| Tue 22 Jun 2010, 7:30 | | GIJ - Gijima Ast Group Limited - Restructuring of debt under the debtors |
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GIJ
GIJ
GIJ - Gijima Ast Group Limited - Restructuring of debt under the debtors
securitisation program
GIJIMA AST GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1998/021790/06
Share code: GIJ
ISIN: ZAE000064606
("GijimaAst" or "the Company" or "the Group")
RESTRUCTURING OF DEBT UNDER THE DEBTORS SECURITISATION PROGRAM
1. INTRODUCTION
1.1 The Company entered into a long-term debtors securitisation funding
programme ("the Programme") in July 2006. In terms of the Programme, the Group
raised R256 million from investors in the Capital Markets at fixed rates for a
period of five years, which is due to expire in July 2011.
1.2 As part of implementing the Programme, GijimaAst had sold the trade debtors
of certain of its subsidiary entities to an independently owned special purpose
entity, GijimaAst Finance (Pty) Ltd ("GijimaAst Finance").
1.3 GijimaAst Finance funded the purchase price paid to the Group by issuing
256 Class A, 60 month secured, non-amortising rated debentures of R1 million
each, and 64 Class B, subordinated unsecured 61 month non-amortising unrated
debentures of R1 million each (subscribed for by a subsidiary entity of
GijimaAst).
1.4 In December 2008 the Group took the view that it would access additional
cash reserves of R100 million on the Programme to provide for the anticipated
tightening credit markets over the 12 months that followed. Despite the healthy
growth in cash generated from operations the Group persisted with its policy to
preserve cash during the uncertain period of the economic recession, and the
R100 million was extended for another six months to 21 June 2010.
1.5 In February 2010, by mutual agreement with a participating investor, the
Group elected to undertake an early settlement of R125 million of the original
R256 million, resulting in a balance of R231 million in outstanding debentures.
2. RESTRUCTURING OF DEBT
2.1 To improve the flexibility of repayment patterns through better alignment
with the Group`s funding requirements, the Group has restructured it debt under
the Programme with its existing investors.
2.2 All the remaining Class A debentures under the Programme have been
redeemed, and the following new debentures totalling R300 million were created
and issued on or about 21 June 2010:
2.2.1 150 class A1, fixed and floating rate secured Debentures with a
nominal value of R1 million each and a maturity date of 30 June 2015, and
2.2.2 150 class A2, floating rate secured Debentures with a nominal value of
R1 million each and a maturity date of 30 June 2012.
2.2.3 The debentures attract a weighted average interest rate of 10,04%
compared to the existing 10,02% that the Group was paying on existing
debentures.
3. RATIONALE
The Board of the Company has taken a strategic decision to retain longer term
secured funds in order to meet its projected funding requirements for continued
growth over the next few years. By redeeming all existing Debentures maturing in
June 2010 and July 2011, and through the issuance of new debentures of R300
million with two and five year maturity dates, the Group has been able to secure
its anticipated funding requirements for future years at competitive rates on
the strength of its debtors book. The Class A1 and A2 debentures have been rated
AA.
Johannesburg
22 June 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 22/06/2010 07:30:01 Produced by the JSE SENS Department.
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