John Energy Privately Places INR 2.7B NCDs at Over 20% IRR With RevX, InCred for One-Time Settlement With ICICI Bank, Part-Repayment of SBI Loan

Reporting: Bhakti Tambe Indian onshore drilling company John Energy Ltd. privately placed INR 2.7 billion ($29.7 million) secured, redeemable, senior, unlisted non-convertible debentures, or NCDs, to RevX Special Credit Opportunities Fund – I, InCred Special Opportunities Fund – I, and a Kolkata-based family office SKS Capital and Research Pvt. Ltd. on Feb. 20, according to documents filed with the Ministry of Corporate Affairs, or MCA. The Gujarat-based company has issued four-year NCDs at an internal rate of return, or IRR, of “upwards of 20%”, two sources familiar with the transaction said, without specifying the exact IRR. INR 2.5 billion of the NCD proceeds were used towards a one-time settlement, or OTS, to pay off a INR 2.3 billion external commercial borrowing loan from lender ICICI Bank, and the remaining INR 200 million was used to partially repay a term loan from State Bank of India, the first source said. ICICI Bank took a haircut on interest payments, the same source said without specifying further details of the OTS. In addition to the NCD proceeds, the company has used INR 300 million internal cash accruals to repay the remainder of the State Bank of India loan to free up the underlying[...]