Centerbridge Partners €1.05 billion acquisition of Senvion from Suzlon Energy

Overview:

• US private equity firm Centerbridge acquired German wind turbine manufacturer Senvion  from Suzlon Energy for €1.05 billion as the Indian wind power company looked to reduce its debt burden. 
• Centerbridge financed the deal with a mix of bank debt and a bond issue. 
• The bank loan was in three tranches: a €125 million multi-currency revolving credit facility, a secured €825 million multi-currency letter-of-guarantee facility, and a secured €180 million super senior cash liquidity facility.
• The €400 million high-yield bond is listed on the Irish Stock Exchange, has a coupon of 6.625%, and is due to mature in 2020. 
• Deutsche Bank and JP Morgan were lead arrangers on the bond issue.
• Citigroup was financial advisor to Centerbridge; Morgan Stanley represented Suzlon.
• Suzlon, Asia's second largest wind turbine maker, has been divesting of assets since it defaulted on $209 million in convertible bonds in 2012, having accrued substantial debt in the course of a spate of acquisitions over the previous decade.    
• The Indian company used 60 billion rupees of Centerbridge's Senvion fee to pay off some of its 165 billion rupee ($2.6 billion) debt. 
• Suzlon bought its initial stake in Senvion from REpower Systems in 2007, acquiring the remainder of the business by 2011. 

Ben Naylor - Regional Editor