New Delhi, Oct. 1 -- US-based alternative investment firm Bain Capital, which makes both private equity and private credit investments in India, has scored a partial exit from its local debt portfolio, VCCircle has gathered.

Bain, which has clocked partial or full exits from at least three India PE portfolio companies this year, has received interest payments and less than half of its principal investment back from New Delhi-based developer TARC Ltd.

The alternative investor-via its arm Bain Capital Credit-had, in April 2022, invested Rs 1,330 crore ($175 million then) in TARC to help the company repay some existing debts at the time. Of the total amount, it invested Rs 1,130 crore via non-convertible debentures due in April 2027 and Rs 200 crore via debentures maturing at the end of December 2023. The debentures carried a coupon rate of 6%, payable annually.

TARC raised another Rs 191 crore from Bain in October last year via debentures due in 2027. Subsequently, it redeemed the previously issued notes that were due on Dec. 31, 2023.

The company has now partially redeemed both sets of 2027 debentures. It redeemed about Rs 451 crore of the debentures with the principal amount of Rs 1,130 crore and made interest payments of about Rs 404.4 crore, stock-exchange disclosures show.

TARC also redeemed about Rs 96.88 crore of the debentures with the principal amount of Rs 191 crore and made interest payments of Rs 47.70 crore. In total, the company has paid Rs 1,000 crore to Bain. Its total principal outstanding is about Rs 773 crore, which it needs to pay by April 2027.

A Bain spokesperson declined to comment for this article.

Meanwhile, the developer said in a statement Tuesday that it stitched debt refinancing of Rs 1,000 crore from a consortium of lndian banks and financial institutions but didn't specify that it would use the fresh loans to repay Bain.

The company said that the lending consortium was led by Kotak Mahindra Bank and included Nomura Capital, and Aditya Birla Capital. It also said it raised Rs 250 crore in additional working capital facility to be available on call.

The debt refinancing will help the company to cut interest costs, it said, adding that the new loans are secured against the project cash flows of two of its projects-TARC Kailasa and TARC Tripundra.

To be sure, Bain has been on a harvest spree in India and signed off from two PE portfolio companies this year. It logged out of private-sector lender Axis Bank and wrapped up its journey with L&T Finance Holdings earlier this year.

In addition, Bain sold a third of its stake in Emcure Pharmaceuticals Ltd through the company's initial public offering. The PE firm scored modest annualised returns in all three exits, VCCircle previously reported.

Bain had been active in India last year, too, having struck three new deals and as many exit moves.

Published by HT Digital Content Services with permission from VC Circle.