Mustek Limited - Implementation And Extention Of L
MST
MST
Mustek Limited - Implementation And Extention Of Long-Term Debtors
Securitisation Funding Programme
MUSTEK LIMITED
Registration number: 1987/070161/06
Share code: MST
ISIN: ZAE000012373
("Mustek " or "the Company" )
IMPLEMENTATION AND EXTENTION OF LONG-TERM DEBTORS SECURITISATION FUNDING
PROGRAMME
1. Introduction
Shareholders are advised that Mustek has entered into a long-term debtors"
securitisation funding programme ("the Programme"). In terms of this Programme,
Mustek has raised R184 million from various investors in the Capital Markets at
fixed rates of 9.70% nacq for a period of five years.
2. RATIONALE
The Board of the Company has taken a strategic decision to replace an existing 5
year debtors funding arrangement with a further long term secured funding
programme in order to meet its projected funding requirements for the next few
years. By issuing zaAA rated promissory notes to investors in the Capital
Markets, the Company has been able to secure its anticipated funding
requirements for the next five years at competitive rates on the strength of its
debtors" book. The Programme has also enabled the Company to apply its balance
sheet in an efficient manner.
3. SALIENT FEATURES OF the PROGRAMME
3.1 In terms of the Programme, Mustek has sold trade debtors to an
independently owned special purpose entity, Mecer Capital (Pty) Ltd ("Mecer
Capital").
3.1.1 Mecer Capital has funded the purchase price paid to Mustek by issuing
R184 million of 60 month secured, non-amortising Senior Promissory Notes, and
has raised a R46 million unsecured 61 month non-amortising subordinated loan.
The Senior Promissory Notes have been awarded a zaAA credit rating by CA
Ratings, and have been issued to investors in the Capital Markets. The
subordinated loan has been subscribed for by the Company.
3.1.2 The Senior Promissory Notes bear interest at a fixed rate, and the
Subordinated Loan bears interest at variable rates.
3.1.3 The programme constitutes a single indivisible transaction, and the
effective date of the programme is 30 November 2006.
Midrand
1 December 2006
Sponsor
Deloitte & Touche Sponsor Services (Pty) Limited
Date: 01/12/2006 09:17:28 AM Produced by the JSE SENS Department
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