New Mauritius Hotels Limited will list 717,373 Fixed and Floating Rate Secured Multicurrency Notes on the Stock Exchange of Mauritius with first day of listing and trading of the notes being the 12 November 2015 with aim of providing liquidity to the Noteholders where the Notes were issued under the financial engineering program of the group to refinance existing debt and meet budgeted capital expenditure.
The Board of Directors of New Mauritius Hotels Limited (NMH)will list 717,373 Fixed and Floating Rate Secured Multicurrency Notes comprising 96,140 MUR Tranche A notes, 618,703 MUR Tranche B notes of a nominal value of MUR 1,000 each and 2,530 EUR notes at a nominal value of EUR 1,000 each by way of private placement.
The approval of the Listing Executive Committee of the SEM has been granted for the listing of the Notes on the Official List of the SEM.
The first day of listing and trading of the above notes shall be 12 November 2015. On the first day of trading, the Directors of NMH have undertaken to make available 100 MUR notes (50 Tranche A and 50 Tranche B notes) and 10 EUR notes for trading at an indicative price per note of MUR 1,000 and EUR 1,000 respectively.
The Notes were initially issued by way of private placement to individuals and institutions, in line with the issuer’s Financial Reengineering program.
Application is now being made for the listing of the Notes on the Official Market of the SEM to provide liquidity to the Noteholders.
The notes were issued in line with the strategy of the Financial Reengineering program in order to ease up short term cash flow pressures, refinance existing debt and meet budgeted capital expenditure, the Board approved the initiation of a capital restructuring and debt rescheduling program.
The Financial Reengineering program, totaling MUR 7.5 billion, aims to alleviate the cash flow pressures of the Company over the next three years through firstly an injection of Rs 1.75 billion (net proceeds) by the shareholders of the Issuer in the form of preference shares.
Secondly a rescheduling of existing bank loans to longer tenors in order to better match the Company’s cash flow with the repayment profile of its loans (impact of circa MUR 3 billion over the next 3 years).
Finally, the issuance and the listing of the Notes together with strategic initiatives aimed at leveraging the Group’s asset base in order to generate additional cash of circa Rs 2 billion over the next 3 years.
These initiatives include sale and leaseback, “invest hotel schemes”, joint ventures and asset disposals.
The cash flow impact of the Financial Reengineering is expected to provide sufficient flexibility to the Company to adequately meet its revised loan capital repayment schedule and capital expenditure program of MUR 1.8 billion for FY15, FY16 and FY17.
The management is confident that the Company will successfully weather the current difficult economic climate until it can fully capitalize on its strong asset base and prime sites in Mauritius, Seychelles and Morocco.
The use of Proceeds of Rs 812 million raised from the Notes, contemplated herein forms part of, and is a key step in, the Financial Reengineering of the Group.
Proceeds from the issue, has been earmarked for the refinancing of Rs 624 million of an existing tranche of bonds which reached maturity on July 2015 and the remaining balance to meet short term cash flow requirements of the Group.
Noteholders acting through the Noteholders’ Representative shall have the right to monitor the utilisation of the proceeds of the private placement and the Noteholders’ Representative shall be entitled to put written questions to the Issuer on work progress or utilisation of monies borrowed.
The Issuer shall be bound to provide answers to any such requests within fifteen Business Days (15 days) of receipt thereof.