SPML Infra implemented S4A scheme to recast Rs 545.85 crore debt
Infrastructure company SPML Infra on Thursday said successful implementation of Scheme for Sustainable Structuring of Stressed Assets (S4A Scheme) would convert about half of its debt to optionally convertible debentures (OCD).
Out of total debt of Rs 1,117 crore, a sum of Rs 545.85 crore is being converted into OCDs with a tenure of 10 years till 2027 carrying a coupon 0.01 % with yield to maturity (YTM) of 8.15 %, a company statement stated.
In the first 5 years, only the said coupon of 0.01% will be paid. Payment of the effective YTM for the said 5 years will commence from the 6th year till 10th year. The payment of OCDs shall be in 20 quarterly instalments starting from quarter ending December, 2022 and ending on the quarter ending September, 2027, the company statement added.
The company said, “the company will also have a cash flow benefit in terms of deferred and reduced debt service obligations of approximately Rs 70 crore per year for a period of five years.” SPML Infra officials said the S4A scheme has been signed with majority of the lender banks. The scheme will support its working capital fund base resulting in strengthening the business of the company followed by the profitable revenue growth.