Hindustan Construction Company (HCC) has signed terms with a consortium of investors led by BlackRock, who will seek to monetize an identified pool of arbitration awards and claims for a consideration of Rs 1,750 crore. The proposed transaction was approved by the Board of Directors of the company at its meeting held on March 26, 2019, and is subject to requisite approvals.
Under the terms of the transaction, the company will transfer its beneficial interest and rights in an identified portfolio of arbitration awards & claims to a special purpose vehicle (SPV) controlled by a consortium of investors, including BlackRock. It will receive a consideration of Rs 1,750 crore from the SPV, which will be utilised to prepay debt of Rs 1,250 crore, including its entire term loan of Rs 942 crore which is due in the next 3 years and Rs 308 crore of OCDs. The balance Rs 500 crore will be made available to fund working capital and business growth.
HCC is a leader in engineering and construction space. The company has established a vast presence and gained recognition in the sectors of Hydro Power, Water Solutions, Transportation and Nuclear Power.
