TFG Sukuk I Limited Capital Structure Exercise and Implications (4957G)

TIDM93DS

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 
  [e-mail]                   [e-mail] 
  [phone]                                      [phone] 
 

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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July 19, 2023 02:15 ET (06:15 GMT)