2020-04-04 IFR Magazine

(Rick Simeone) #1
80 International Financing Review April 4 2020

RESTAR HOLDINGS SIGNING ¥60bn
FACILITY

3EMICONDUCTORûMANUFACTURERûRESTAR
HOLDINGSûISûSIGNINGûAûcBNûONE
YEARû
COMMITMENTûFACILITYûONû4UESDAYûTOûLOCKûINû
FUNDINGûTOûDEALûWITHûTHEûCORONAVIRUSû
SITUATION
MUFGûWASûTHEûMANDATEDûLEADûARRANGER û
WHILEûMizuho Bank and SMBC CAMEûINûASûJOINTû
ARRANGERS
4HEûELECTRONICSûCOMPANYûWILLûUSEûTHEû
FUNDSûFORûWORKINGûCAPITAL

MALAYSIA


PURECIRCLE FACES TESTING MATURITY

3WEETENERûPRODUCERûPURECIRCLE is likely to
FACEûSIGNIlCANTûCHALLENGESûTOûREPAYûAû
PORTIONûOFûITSûDEBUTûLOANûDUEûINû.OVEMBER û
AFTERûMULTIPLEûCOVENANTûBREACHESûANDûINûTHEû
UNFAVOURABLEûBUSINESSûENVIRONMENTûDUEûTOû
THEûCORONAVIRUSûPANDEMIC
4HEû,ONDON
LISTEDûGROUPûMAYûNOTûHAVEû
SUFlCIENTûLIQUIDITYûUNTILûAû53Mû
REVOLVINGûCREDITûFACILITYûMATURESûONû
.OVEMBERûûANDûISûLIKELYûTOûBREACHû
certain conditions and covenants that
WEREûWAIVEDûANDûAMENDEDûASûRECENTLYûASû
LASTû&RIDAY
0URE#IRCLESûDIRECTORSûAREûTRYINGûTOûHAVEû
THEûSUSPENSIONûOFûTHEûCOMPANYSûSHARESû
LIFTED ûBUTûTHEREûISûAûRISKûTHISûMAYûNOTûOCCURû
BYû!PRILûûASûREQUIREDûUNDERûTHEûAMENDEDû
FACILITYûCOVENANT
h4HEûGROUPSûLIQUIDITYûWILLûBEûTIGHTûANDû
OURûPROJECTIONSûINDICATEûTHATûWEûWILLûBREAKû
OURûRESETûCOVENANTS vûTHEûCOMPANYûSAIDû
h4HEûGROUPûISûEXPLORINGûALTERNATIVEû
lNANCINGûOPTIONSûTOûRElNANCEûITSûEXISTINGû
TERMûLOANûBEFOREûITûMATURESûINû.OVEMBERû
v
4HESEûOPTIONSûWILLûINCLUDEûOBTAININGûAû
DElNITIVEûNEWûEQUITYûINFUSION ûFULLûDEBTû

RElNANCINGûORûTHEûSALEûANDûLEASEBACKûOFû
RElNERYûPLANTûFACILITIES
5NDERûTHEûTERMSûOFûTHEûWAIVERSûANDû
AMENDMENTS û0URE#IRCLEûWILLûHAVEû
ACCESSûTOûAû53MûREVOLVINGûCREDITû
FACILITY ûWHICHûISûPARTûOFûAûLARGERû
53MûSENIORûSECUREDûlNANCING û
FOLLOWINGûTHEûRECEIPTûOFûTHEûAUDITEDû
lNANCIALûSTATEMENTSû4HEûREMAININGû
53MûPORTIONûISûAûFOUR
YEARûTRANCHEû
DUEûINû$ECEMBERû
The group did not satisfy all of the
CONDITIONSûOFûTHEûAGREEMENT ûBUTûTHISûBREACHû
WASûWAIVEDûONû-ARCHûû4HEûFACILITYûALSOû
CONTAINSûCERTAINûOTHERûCONDITIONS
/Nû&EBRUARYû û0URE#IRCLEûAGREEDûANû
AMENDMENTûTOûITSûEXISTINGû53Mû
lNANCINGûAFTERûISSUESûEMERGEDûLASTûYEARûWITHû
THEûWAYûTHEûCOMPANYûHADûREPORTEDûANDû
VALUEDûINVENTORY
4HEûAMENDMENTûPROVIDEDûAûFULLûWAIVERûOFû
ALLûPREVIOUSûDEFAULTSûONûTHEûDEBT ûWITHûALLû
LENDERSûALSOûAGREEINGûTOûAMENDûTHEû
COVENANTSûTOûBEûTESTEDûONû-ARCHûûANDû*UNEû
û4HEûCOMPANYûALSOûOBTAINEDûANûADDITIONALû
53MûINûLIQUIDITYûFROMûCERTAINû
shareholders through an unsecured
SUBORDINATEDûLOAN
0URE#IRCLEûSOUGHTûWAIVERSûONûTHEûDEBTû
AFTERûDISCOVERINGûISSUESûWITHûITSû
CLASSIlCATIONûANDûVALUATIONûOFûINVENTORYûINû
3EPTEMBERûû)TûFOUNDûTHATûINVENTORYûWASû
LOWERûBYûAROUNDû53MûANDûCONSEQUENTLYû
INCREASEDûTHEûCOSTûOFûGOODSûSOLDûBYûTHEûSAMEû
AMOUNTû4HEûEFFECTûWASûSPREADûACROSSû
lNANCIALûYEARSûûANDû ûWITHû
POTENTIALLYûAûRELATIVELYûMODESTûADJUSTMENTû
TOû
(3"#ûWASûTHEûMANDATEDûLEADûARRANGERû
ANDûBOOKRUNNERûOFûTHEûûDEBUTûLOAN û
WHICHûATTRACTEDûlVEûOTHERS
0URE#IRCLEûANNOUNCEDûAûNETûLOSSûOFû
53MûFORûûONû4UESDAYûAFTERûTAKINGû
charges for the earlier inventory
MISREPORTINGû)TSûSHARESûHAVEûBEENû
SUSPENDEDûSINCEûLATEû/CTOBER

NEW ZEALAND


KATHMANDU AIMS TO BOOST LIQUIDITY

,ENDERSûTOûKATHMANDU HOLDINGSûHAVEûRELAXEDû
ANDûWAIVEDûCERTAINûCOVENANTSûSUBJECTûTOûTHEû
OUTDOORûRETAILERûCOMPLETINGûANûEQUITYû
FUNDINGûOFûATûLEASTû.:Mû53M 
+ATHMANDUûHASûWONûCOVENANTûWAIVERSûFORû
THEûPERIODSûENDINGû*ULYûûûANDû*ANUARYû
û ûANDûAûRELAXATIONûOFûCERTAINû
COVENANTSûFORûTHEûPERIODûENDINGû*ULYûû

4HEûCOMPANYûEXPECTSûTOûHAVEûSUFlCIENTû
LIQUIDITYûTOûCOVERûPAYMENTSûANDûMEETûCAPITALû
REQUIREMENTSûFORûATûLEASTûTHEûNEXTûû
MONTHS ûBASEDûONûCONSERVATIVEûASSUMPTIONS û
ANDûTOûBEûINûAûPOSITIONûTOûMEETûITSûAMENDEDû
COVENANTûTESTûFORûTHEûPERIODûENDINGû*ULYûû

+ATHMANDUSûTOTALûLIQUIDITYûPOSITIONûWILLû
GETûAûBOOSTûTOû.:MûUPONûSUCCESSFULû
COMPLETIONûOFûANûEQUITYûFUNDRAISINGûOFûUPûTOû
.:M ûWITHûNOûDEBTûMATURITIESûBEFOREû
.OVEMBERû
4HEûCOMPANYûISûTAKINGûPRE
EMPTIVEûACTIONû
TOûREMAINûSTRONGLYûCAPITALISEDûWITHû
SUFlCIENTûLIQUIDITYûDURINGûTHEûCURRENTû
MARKETûUNCERTAINTYûSTEMMINGûFROMûTHEû
CORONAVIRUSûPANDEMIC
5NTILûTRADINGûCONDITIONSûIMPROVE ûITûISû
suspending its dividend, including the
INTERIMûDIVIDENDûFORûTHEûHALFûYEARûENDEDû
*ANUARYûû
(OWEVER û+ATHMANDUûACKNOWLEDGEDûTHATû
ITûSTILLûFACESûAûRISKûTHATûTHEûIMPACTûOFû#OVID
ûISûWORSEûTHANûEXPECTEDûANDûMAYûRESULTûINû
NON
COMPLIANCEûWITHûCOVENANTSûFORûTHEû
PERIODûENDINGû*ULYûû ûORûOTHERWISEû
TRIGGERûANûEVENTûOFûDEFAULT ûANDûTHEûCOMPANYû
ISûUNABLEûTOûOBTAINûFURTHERûSUPPORTûFROMû
BANKS
)NûSUCHûANûEVENTUALITY ûTHEûCOMPANYûMAYû
NEEDûTOûRElNANCEûITSûEXISTINGûDEBTûONûLESSû
FAVOURABLEûTERMSûORûTAKEûOTHERûACTIONSûTOû
COMPLYûWITHûITSûCOVENANTS ûWHICHûMAYûHAVEû
AûMATERIALûADVERSEûEFFECTûONûITSûOPERATINGû
PERFORMANCEûANDûEARNINGS
!SûATû*ANUARYû ûTHEûCOMPANYûHADûAûFULLYû
DRAWNû.:MûTERMûLOANûANDû.:Mû
REVOLVINGûCREDITûFACILITY ûOFûWHICHû.:Mû
WASûDRAWN
)Nû*ANUARY û+ATHMANDUûCLOSEDûSYNDICATIONû
OFûAû!Mû53M ûTHREE
YEARûLOANû
BACKINGûITSûACQUISITIONûOFû2IPû#URLû'ROUP

SINGAPORE


LOUIS DREYFUS SOUNDS OUT BANKS

LOUIS DREYFUS COMMODITIES ASIA is in discussions
WITHûRELATIONSHIPûBANKSûFORûITSûANNUALû
RElNANCINGû4HEûBORROWERûHASûAû53Mû

GLOBAL LOANS BOOKRUNNERS – FULLY
SYNDICATED VOLUME
BOOKRUNNERS: 1/1/2020–31/3/2020
Managing No of Total Share
bank or group issues US$(m) (%)

Proportional credit
Source: Refinitiv SDC code: R1

1 BofA Securities 309 87,585.32 10.4
2 JP Morgan 259 81,437.74 9.7
3 Citigroup 175 59,332.96 7.1
4 Wells Fargo 198 44,690.01 5.3
5 Mizuho 231 40,305.00 4.8
6 MUFG 315 33,150.12 3.9
7 Sumitomo Mitsui 258 27,353.14 3.3
8 Credit Suisse 94 25,633.69 3.1
9 Morgan Stanley 68 25,146.58 3.0
10 Barclays 129 24,541.45 2.9
Total 1,877 839,879.44

GLOBAL LOANS BOOKRUNNERS – FULLY
SYNDICATED VOLUME (EX US)
BOOKRUNNERS: 1/1/2020–31/3/2020
Managing No of Total Share
bank or group issues US$(m) (%)

Proportional credit
Source: Refinitiv SDC code: R4

1 Mizuho 174 26,773.49 9.9
2 Sumitomo Mitsui 225 20,669.00 7.7
3 MUFG 246 20,302.32 7.5
4 Bank of China 64 10,001.44 3.7
5 HSBC 48 8,345.81 3.1
6 CIBC 30 8,115.41 3.0
7 Deutsche Bank 31 7,992.65 3.0
8 Scotiabank 34 7,748.98 2.9
9 Credit Agricole 38 7,414.74 2.8
10 BMO 30 7,158.81 2.7
Total 1,044 269,264.64

9 IFR Loans 2327 p 75 - XX.indd 80 03 / 04 / 2020 19 : 26 : 35

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