Concerns revolve around the mandatory prepayment clause, including coupon step-ups and utilising proceeds from the monetisation of assets like Afcons and Gopalpur Port. The presentation made to investors during the bond sale said that if a minimum amount of ₹1,500 crore is not repaid by December 31, 2023, the coupon rate escalates by 2%. However, the company could have a 30-day cure period to fulfil the covenant and prevent a breach, a source said.
“There is no breach resulting in any form of mandatory prepayment,” said a spokesperson for Shapoorji Pallonji. “Secondary market fluctuations in yield have no impact on the company.” Deutsche Bank AG, Standard Chartered, special situation funds and private credit funds, including Cerberus Capital, Varde Partners, Canyon Capital, and Davidson Kempner, had participated in funding Goswami Infratech.
Foreign funds and global banks had sold high-yield NCDs in the secondary market to ultra high networth individuals. Goswami Infratech is rated BBB- rating. Also, these NCDs are secured by assets. These include a pledge over a 9.185% stake in Tata Sons (TSPL), compulsorily convertible preference shares (CCPS) in Afcons that can be converted to a 72% stake, and ownership in HoldCo, which owns two operational port assets, including Gopalpur Port.
Adani Ports has been in talks to acquire Shapoorji Pallonji Group’s Gopalpur Port but the deal is not yet closed, as reported. SP Port Maintenance currently holds a 56% stake in Gopalpur Port, with the remaining held by Orissa Stevedores (OSL). SP Port, in turn, is 100% owned by SP Imperial Star, which serves as its guarantor. According to credit rating firm Care Edge, Gopalpur Port has long-term bank facilities of ₹1,432 crore, as of February 2023.
To meet financial obligations, SP Group has been raising funds through monetisation. The proceeds from these asset sales are being used to repay the non-convertible debenture holders of a ₹14,300-crore issue.
As part of its monetisation strategy, SP Group divested a majority 50% stake in the 5 million tonnes per annum (MTPA) PNP Maritime Services (PNP Port). Operating multi-purpose jetties at Shahbaj, in Raigad district of Maharashtra, approximately 20 nautical miles from Mumbai Anchorage, the Raigad facility was acquired by JSW Infrastructure for ₹270 crore in cash, with an enterprise value of around ₹700 crore.
