REG - APQ Global Limited - Refinancing Update & Proposed CULS Holder Payment

APQ GlobalAnnouncement

24/09/2024 13:00

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RNS Number : 4648F  APQ Global Limited  24 September 2024

APQ Global Limited

 

("APQ Global" or the "Company")

 

Refinancing Update & Proposed Initial Payment to CULS Holders

 

Further to the Company's 6(th) September 2024 announcement in connection with
the publication of proposals and the convening of a meeting of CULS Holders
for the extension of the settlement date for the CULS, the Company provides
the following update.

 

In response to feedback from CULS Holders on the proposals APQ Global provides
some additional information on Delphos, the financial advisory business for
emerging markets private credit that is wholly owned by the Company, an
overview on the Company's efforts to date to refinance the CULS, and a
liquidity update and proposed amendment to the terms of the proposals to CULS
holders which, subject to CULS Holders approving the proposals, would involve
an initial payment to CULS Holders on the CULS maturity date.

 

Delphos

 

Since the Company acquired Delphos in 2022, it has invested $12.45m in cash
contributions to Delphos entities.  The table below sets out a schedule of
these cash contributions per quarter:

 

 USD ('000)                2022 Q2  2022 Q3  2022 Q4  2023 Q1  2023 Q2  2023 Q3  2023 Q4          2024 Q1  2024 Q2  2024 Q3  Total
 Working Capital           125      290      1,768    985      1,605    2,262    -      254       - 1,759  2,084    826      7,930
 Equity                    -        -        -        350      150      329      3,091            250      250      100      4,520
 Total Cash Contributions  125      290      1,768    1,335    1,755    2,591    2,837            - 1,509  2,334    926      12,450

Source: Management

 

As stated in the 6(th) September announcement, Delphos is currently executing
around 40 transactions in around 20 countries and the portfolio is diversified
across geographies (Africa, Central Asia, Middle East, Latin America and
South-East Asia) and sectors (infrastructure, renewables, financial services
and funds).

 

Overview of CULS refinancing discussions

 

Over the past two months the Company has engaged with over 10 counterparties
for refinancing the CULS, including:

·      A bank with a focus on emerging markets. An NDA has been signed
and information is being exchanged.

·      A private markets fund based in Latin America with a specific
strategy to develop a global origination platform. An NDA has been signed and
information is being exchanged.

·      An EM private markets fund backed by a large EM bank.

·      Boston-based emerging market funds looking to grow in EM private
markets.

·      Various other EM-focused funds in the US and Europe.

 

Pending the publication of its FY23 accounts and the resumption of trading in
the Company's ordinary shares and CULS, the Company intends to commence
negotiating formal terms with counterparties expediently with the aim of
securing a financing facility for the Company by FY24 year-end.

 

Liquidity Update and Proposed Initial Payment to CULS Holders

 

The Company confirms that its cash balance currently stands at $9.6m. The
Company is required to post collateral of $3.0m towards its GBPUSD currency
hedge of the CULS liability. Additionally, the Company believes that it is
prudent to reserve $4.0m as a working capital buffer.

 

The Company is committed to repaying as much capital as possible to CULS
Holders as quickly as possible over the next six months as income from
Delphos' operations and the proposed refinancing is received. To ensure full
repayment of the premium redemption and increased coupon, it is imperative
that the Company retains its currency hedge of the CULS liability and retains
sufficient working capital to monetize its expected cashflows from operations.

 

In response to feedback from CULS Holders, the Company also proposes that, if
the proposals set out in the Circular are approved at the meeting of the CULS
Holders on 30(th) September 2024, it will pay, on the Maturity Date of 30(th)
September 2024, an amount equal to $2.7m (£2.0m), representing approximately
6.76 per cent. of the aggregate redemption proceeds of the CULS at the
Maturity Date (the "Initial Payment"). The Initial Payment will be made to the
Trustee for onward payment to CULS Holders. If the Resolution to be proposed
at the Meeting of CULS Holders is passed, the Trust Deed will be amended as
set out in the Circular. The amendments would take effect from completion of
the Initial Payment and would therefore be in respect of the reduced
outstanding principal amount of CULS.

 

Terms used and not defined in this announcement shall have the meanings given
to them in the Circular published on 6(th) September 2024.

 

- End -

 

 

For further enquiries, please contact:

 

 APQ Global Limited                                     020 3478 9708
 Bart Turtelboom

 Singer Capital Markets - Nominated Adviser and Broker  020 7496 3000
 James Maxwell/Sam Greatrex

 Suntera - TISE sponsor                                 01481 737 277
 Claire Torode

 Investor Relations

 IR@APQGlobal.com

 

Notes to Editors

 

APQ Global Limited

 

APQ Global (ticker: APQ LN) is an investment company incorporated in Guernsey.
The Company focuses its investment activities globally (in Asia, Latin
America, Eastern Europe, the Middle East, Africa and the Channel Islands,
particularly). The objective of the Company is to steadily grow its earnings
to seek to deliver attractive returns and capital growth through a combination
of building growing businesses as well as earning revenue from income
generating operating activities in capital markets(1.) APQ Global run a
well-diversified and liquid portfolio, take strategic stakes in selected
businesses and plan to take operational control of companies through the
acquisition of minority and majority stakes in companies with a focus on
emerging markets. For more information, please visit apqglobal.com
(http://www.apqglobal.com/) .

 

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