Metair - debt financing arrangements update
Metair shareholders (“shareholders”) are advised of the following information with regard to Metair’s debt financing arrangements:
Metair currently has an aggregate of R1.4 billion in cumulative redeemable no par value preference shares (“Preference Shares”) in issue which are redeemable on a pro rata basis over a period of five years from the date of issue, being 2 September 2014.
Metair indicated in the 2017 interim results commentary published on SENS on 17 August 2017 that it intended to refinance the R840 million Preference Shares, maturing in October 2017 (“Maturing Preference Shares”), using a combination of a new preference share subscription for R500 million, with a 3 year maturity, and additional revolving credit facilities of R350 million, with a 5 year maturity. The Group has subsequently finalised a new repayment structure while continuing to secure long term liquidity for the Group.
Redemption of preference shares
In light of the strong cash generation of the Group, as well as, the relative ease of repatriating funds from Metair’s foreign operations, Metair has extended the maturity date of the R280 million of the Maturing Preference Shares to September 2018 and has redeemed the R560 million in Maturing Preference Shares, using a combination of available cash of R280 million and existing unutilised debt facilities.
The remaining Preference Shares still in issue total R840 million, at a dividend rate of 69% of the ruling South African prime interest rate calculated on a nominal annual monthly compounded basis. The maturity profile of the remaining Preference Shares require redemption of R560 million Preference Shares in September 2018 and R280 million Preference Shares in September 2019.
Long term liquidity
Metair advised shareholders that it has successfully secured a number of commitments, in excess of its requirements, from several of leading South African banks for longer term funding and liquidity at very competitive rates. Metair expects to finalise the required debt facilities during October 2017, and will advise shareholders accordingly.
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