Deal Closed | Allianz Global Investors Singapore Limited | Private Credit

The details of the deal are as under: 

Sector: Manufacturing/Industrials

Announcement Date: 22-Dec-2020 

Completion Date: 22-Dec-2020 

Name of Client: Allianz Global Investors Singapore Limited 

Deal Description: Khaitan advised the Client in connection with their private credit to a Sterlite Power Group company (“Issuer”) in the form of their subscription to senior, secured, unrated, unlisted, non-convertible debentures aggregating up to INR 200,00,00,000 (Indian Rupees Two Hundred crores only) on private placement basis (“Issue”). The proceeds of the Issue shall be utilized towards repayment of existing loans and advances, for providing inter-corporate deposit and general corporate purposes. The Issue is secured, inter alia, by first charge on current assets of the Issuer, pledge of shares of the Issuer and project companies, mortgage of immovable properties, all ranking pari passu with another lender. 

Total Consideration: INR 200 crore (USD 27.53 million) 

Team Members: The core team consisted of Manisha Shroff (Partner), Riya Bhattacharjee (Principal Associate), Jessica Gandhi (Senior Associate), Kratika Parashar (Associate), Pratibha Kedia (Associate), Shrooti Shukla (Associate), Siddhant Gajendra Shetty (Associate) and Sonakshi Faujdar (Associate). Siddharth Srivastava (Partner), Kanika Kadam (Principal Associate), Mohit Kishore (Senior Associate) and Udita Singh (Associate) advised on due diligence of the project companies, Yigal Gabriel (Partner) and Meherasp Mistry (Associate) advised on the real estate aspect of the transaction and Aayush Thapar (Associate), Raashi Pathak (Associate) and Shruti Gupta (Associate) assisted on closing aspects. 

Role of Firm: Investor Counsel 

Other legal advisors if any with names of Lead Lawyers: L&L Partners 

Unique Feature of Transaction: The transaction was structured in a manner to ring fence the monetization proceeds and ensure equal sharing of such proceeds between the Client and another lender.  There was a negotiated and complex pari passu security sharing agreement with existing lenders and common escrow account and agency structure which added to the complexity of the transaction. 

Innovative Feature of the transaction: Pari passu sharing of the monetization proceeds and a common charge on the shares of the Issuer and the project companies between the Client and the term lender.