Adani Ports and Special Economic Zone Ltd on Wednesday said it will buy back up to $195 million of its notes due in 2024 at a price below their original issue. The company said it has reached a tender offer to buy the outstanding 3.375 per cent senior notes due 2024 for up to $195 million in cash.
To repurchase debt, bond buybacks allow companies to repurchase debt through tender offers, allowing them to retire some or all of the securities ahead of their due date.
The purpose of the Tender Offer is to partially prepay the company's near-term debt maturities. After successful completion of this tender offer, the company expects to remain outstanding US$325,000,000 notes, the company said in a regulatory filing on Wednesday.
The company is optimistic that the $325 million notes will remain outstanding following the finalization of this tender offer.
In May 2023, the company said it would buy about 20 percent of the issued notes for cash over the next four quarters, for a total purchase price of $130 million. The company is buying the second tranche of the notes for cash, around 30 per cent of the issued notes' principal amount, or up to $195 million in aggregate principal.