GMR refinances $837-million debt for InterGen stake buy

GMR has achieved financial closure for refinancing its $837-million debt raised for purchasing stake in InterGen NV in 2008. The two-year bridge loan has now been converted into a five-year loan.

“We have achieved the financial closure for our $837-million debt for the refinancing for (the) InterGen (stake buy). The project was earlier refinanced with a bridge loan for a two-year period, which ends in October 2010. This has been replaced by a regular five-year loan facility,” said Madhu Terdal, president, New and Emerging Businesses, GMR Infrastructure.

Axis Bank and ICICI Bank are the lead bankers for this refinancing. Bank of Baroda, Bank of India, Indian Bank, Indian Overseas Bank and Syndicate Bank are among the other banks that have formed the financing consortium.

GMR had acquired the 50% stake in InterGen from AIG Highstar Capital II LP, a fund owned by the American International Group (AIG). Back in 2008, according to a press release issued by GMR, the transaction was valued at $1.1 billion. This was touted as one of the biggest Indian overseas acquisitions then.

The infrastructure group had raised $837 million through debt for its stake purchase in InterGen. This debt was financed through a bridge loan, which was scheduled to end in October 2010.

Recently, GMR and InterGen have been in the spotlight ahead of international news reports of GMR looking for buyers to sell their stake in InterGen. Mr Terdal has refuted these news reports as mere speculation.

For the past few months, various media sources have also reported on GMR looking for banks to refinance this $837-million debt. 

InterGen has 12 power plants located across the UK, the Netherlands, Mexico, Australia and the Philippines. GMR’s presence in these countries is only due to the InterGen acquisition. InterGen, with its headquarters in the Netherlands, was delisted from the Singapore Stock Exchange in 2008.

While GMR holds 50% stake in InterGen, the balance 50% in InterGen is held by Ontario Teachers’ Pension Plan. This Canadian pension plan has held this stake in InterGen since 2005.

According to a Wall Street Journal report, InterGen seeks to expand in Asia, North America and the UK. The company estimates it will make $600 million in earnings before interest, taxation, depreciation and amortisation for 2010, people familiar with the matter said.

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COMMENTS

yogesh joshi

7 years ago

now what is future of gmr infra it is godd for investing for 12 month horigen

monil

7 years ago

whts the target price of GMR IFRASTRUCURE in nect quarter?

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