Suzlon Sells U.S. Farm as German Unit Gets $1.2 Billion Loan

Apr 08, 2014 5:23 am ET

(Updates with company statement in fourth paragraph.)

April 8 (Bloomberg) -- Suzlon Energy Ltd., an Indian wind- turbine maker, disposed of an Illinois wind farm to help cut its 170 billion-rupee ($2.8 billion) debt pile.

The Indian company is seeking to raise cash after failing to repay $209 million of foreign currency notes in October 2012 in India’s biggest convertible-bond default. Suzlon sold its Big Sky wind farm to EverPower Wind Holdings Inc., the U.S. Federal Energy Regulatory Commission said in a statement on its website yesterday.

The transaction ended a two-year effort by Suzlon to get repayment for a $228 million loan it gave to the project. The turbine maker expects to recover $90 million from the asset, Kirti Vagadia, Suzlon’s group head of finance, said in February.

Separately, its German unit Senvion SE, formerly called REpower Systems, obtained an 850 million-euro ($1.2 billion) credit line, Suzlon said in a statement today. The working- capital facility replaces a 750 million-euro syndicated loan expiring in August and was provided by 14 banks led by Bayerische Landesbank, Commerzbank AG and Deutsche Bank AG, according to the statement.

Suzlon is also considering an initial public offering of Hamburg-based Senvion to raise about 600 million euros, people familiar with the matter said April 4.