Note-holders can convert certain portion into equity
BBN Dubai
DUBAI: The Dubai Financial Market (DFM)-listed Shuaa Capital has on Friday reached an agreement with its note-holders to facilitate amendment to the terms of its outstanding $150 million bond, issued by a Shuaa-affiliated SPV.
Shuaa Capital is an investment bank that specializes in asset management, corporate finance advisory, capital markets, and investment banking. Established in 1979, the 45-year-old company has led a number of historic IPOs, including the region’s biggest-ever IPO of DP World in 2007.
Shuaais pursuing an optimisation plan to right-size its balance sheet, bolster liquidity, enhance its operational metrics and pave the way for a new capital infusion expected in the next 12 months in order to drive growth.
Under the agreement, and subject to regulatory and shareholder approval, the company intends to give note-holders the option to elect to convert a certain portion of their notes into equity, following which any remaining notes shall be settled in cash at a pre-agreed discount, ahead or at the revised maturity date of March 31, 2025.
“The new terms deliver significant advantages to shareholders and note-holders. They present an opportunity for note-holders to actively participate in the company’s growth plan, while enabling an attractive equity story based on a significant reduction in liabilities, which should translate positively on the company’s financial position and performance,” a company statement said.
The company said with this phase getting concluded, the company will shift its attention to finalising negotiations with its senior creditor ahead of an envisaged capital injection aimed at paving the way for the next growth phase.
The acting CEO Wafik Ben Mansour said, “Our vision is to position Shuaa at the forefront of the region’s asset management and investment banking arena, driving innovation, and delivering unparalleled value to our clients and shareholders.”
