Lodha Group subsidiary announces buy-back programme for its 2020 bonds

Lodha Group subsidiary announces buy-back programme for its 2020 bonds
23/01/2019 , by , in News/Views

Lodha Developers International Limited, a subsidiary of India’s largest real estate developer Lodha Group, today announced a buy-back programme for its senior dollar denominated bonds which are due in the year 2020. The company has entered into arrangements with J.P. Morgan Securities PLC to commence the bond buy-back programme for repurchasing on its behalf, up to US$65 million (i.e. up to 20 per cent of the outstanding) of the said bonds.

With the purchase of the 2020 Bonds, Lodha Group will provide liquidity to the 2020 Bondholders, proactively manage its capital structure and reduce gross debt and leverage.

Lodha Developers International Limited (the “Company”) hereby announces that it intends to enter into arrangements with J.P. Morgan Securities plc to commence a buy-back programme to repurchase on its behalf, up to US$65 million (i.e. up to 20 per cent.) of the US$325 million outstanding principal amount of the 12 per cent. Senior Notes due 2020 issued by the Company (the “2020 Bonds”).

It is expected that the arrangements will take effect from 22 January 2019. In accordance with the terms and conditions of the 2020 Bonds, the purchased 2020 Bonds may either be cancelled or held until their maturity date.

Purchases of the 2020 Bonds will be financed by the Company from its currently available funds.

The purpose of the purchase of the 2020 Bonds is for the Company to provide liquidity to the 2020 Bondholders, proactively manage its capital structure and reduce gross debt and leverage.

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