In a record-breaking transaction for India’s private credit sector, Cerberus Capital Management, alongside a consortium of investors, has committed a staggering ₹28,600 crores (approximately $3.3 billion) to secure non-convertible debentures (NCDs) issued by Porteast Investment Private Limited, a Shapoorji Pallonji Group entity.
This financial maneuver, designed to refinance the conglomerate’s existing debt, represents the largest private credit deal in the country’s history. The unrated, unlisted, zero-coupon, and redeemable debentures are fortified by a comprehensive security package. This includes a pledge over 9.185% of Tata Sons’ equity, hypothecation of assets, and additional pledges covering shares of the issuer and other group companies. Guarantees and credit support from Shapoorji Pallonji Group entities further strengthen the investment.
Legal advisory for this monumental deal was provided by Khaitan & Co., whose team brought expertise spanning corporate, real estate, and fund structuring laws. The firm played a pivotal role in navigating the complexities of this multifaceted transaction.
The Shapoorji Pallonji Group, a cornerstone in India’s industrial landscape, benefits from this capital infusion as it restructures its financial commitments. Meanwhile, the deal underscores the growing significance of private credit in addressing high-stakes refinancing needs within India’s corporate ecosystem.