REG - TFG Sukuk I Limited - Capital Structure Exercise and Implications

Rothschild & Co SCAAnnouncement

19/07/2023 08:30

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RNS Number : 4957G  TFG Sukuk I Limited  19 July 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

 

Aurum (Cayman) Limited

(the "Company")

 

Date: 19 July 2023

Capital structure exercise and implications for Certificateholders

Notice is hereby given that, due to a range of short-term factors, the Company
is facing liquidity tightening in relation to the payment of the principal
payment due on 7 August 2023 under the U.S.$135,000,000 Secured 10.50 per
cent. amortising Certificates due 2024 issued by TFG Sukuk I Limited (the
"Certificates").

While the Company intends to make payment, in full, of the profit payment due
under the Certificates on 7 August 2023, the Company will be unable to meet
its principal payment of US$27m in full on the due date. The Company expects
to be in a position to service approximately U.S.$2 million of the principal
payment due on 7 August 2023 and continues to explore a number of operational
levers and external financing options to service this principal payment in
full during the remainder of the calendar year. The Company has an adequate
level of liquidity for operational purposes and is not seeking external
financing for operational purposes.

In the context of the impact of the post Covid-19 recovery period and current
cash flow forecast profile, the Company believes a reprofiling of its
repayment profile is required. The Company has appointed Rothschild & Co
to advise the Company on pursuing options to optimise the Company's capital
structure and to support the Company on running simultaneous processes,
including seeking (i) a refinancing and/or amendment of current indebtedness;
and (ii) raising equity from strategic investors.

In respect to the parallel workstream to reprofile the repayment profile of
the Certificates, the Company is seeking an inclusive and collaborative
approach with Certificateholders in this respect. It is therefore proposing an
amendment to the terms and conditions of the Certificates, which will be
discussed in conjunction with its Certificateholders, to allow for:

·   A fully amortising structure with a 2-year tenor extension and limited
amortisation on the final instalment payment;

·     Subsequent principal repayments of the Certificates, through the
raising of either debt and/or equity and with a corresponding release of
security, if required, to facilitate such debt or equity raises (subject to a
minimum security coverage being maintained for Certificateholders);

·     Economics In the context of the amendments; and

·     Enhanced protections and information undertakings for the benefit
of Certificateholders.

Further updates will be provided when available.

For further information, please contact:

 Naveen Bhojwani                       Lilia Sekkat

 Managing Director                     Assistant Director

 Naveen.Bhojwani@rothschildandco.com   Lilia.Sekkat@rothschildandco.com

 +971 50 132 7219                      +971 50 212 6365

This announcement contains inside information for the purposes of Article 7 of
the UK Market Abuse Regulation.  The person responsible for arranging the
release of this announcement is Rashad Barajakly, Managing Director and Chief
Financial Officer.

 

Cautionary statement

This Announcement contains certain forward-looking statements regarding the
financial condition, performance, results of operations and business of Aurum
(Cayman) Limited which are or may be deemed to be "forward looking
statements". These forward-looking statements can be identified by the fact
that they do not relate only to historical or current facts. Forward-looking
statements often use words such as "anticipate", "target", "expect",
"envisage", "estimate", "intend", "plan", "goal", "believe", "hope", "aims",
"continue", "will", "may", "should", "would", "could", or other words of
similar meaning. These statements are based on assumptions and assessments
made by Aurum (Cayman) Limited, in light of its experience and perception of
historical trends, current conditions, future developments and other factors
it believes are appropriate. By their nature, forward-looking statements
involve risk and uncertainty, because they relate to events and depend on
circumstances that will occur in the future and actual results and
developments may differ materially from those expressed in or implied by such
forward-looking statements. Although it is believed that the expectations
reflected in such forward-looking statements are reasonable, no assurance can
be given by Aurum (Cayman) Limited that such expectations will prove to have
been correct and you are therefore cautioned not to place undue reliance on
these forward-looking statements which speak only as at the date of this
Announcement. Neither Aurum (Cayman) Limited nor Rothschild and Co. assumes
any obligation and to update or correct the information contained in this
Announcement (whether as a result of new information, future events or
otherwise), except as required by applicable law or regulation.

 

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