Debt

Debt financing

Aurobindo Pharma promoters raise Rs 2k cr to fund realty, other asset buys

Economic Times  

Aurobindo Pharma's promoter group has raised around INR 2,000 crore through a two-tranche promoter financing structure to fund platform acquisitions, including the Taj Banjara asset in Hyderabad. The borrowing is being routed through the promoters' real estate arm, Auro Realty.The transaction is split into two parts. The INR 650 crore Series 1 comes with a 24-month tenor and a two-year put and call option, and INR 1,450 crore, which will be Series 2 with a four-year tenor.Series 1 will carry a coupon of 11.75%, while Series 2 is likely to be priced at 15.5%.The debt is backed by a pledge of promoter special purpose vehicles- Raidurgam Developers and Auro Realty - along with other hard collateral. These assets are together valued at more than INR 2,500 crore, supported by personal and corporate guarantees.Raidurgam Developers (RDL) is the entity managing the Galaxy Tower project in Raidurgam, a Hyderabad suburb that is home to several high-tech companies. The collateral cover stands at nearly 2.5x, rising to around 4x with the other guarantees.