SHUAA seeks noteholder nod on changing terms of $150m bonds

SHUAA Capital launched a consent solicitation relating to changing terms and conditions for $150 million in outstanding bonds issued by an affiliated special purpose vehicle and due on March 31, 2024. The proposal has garnered support from more than 25 per cent of noteholders already.

The move forms part of the broader capital optimisation process previously announced by SHUAA Capital and represents the most effective way to significantly enhance the capital structure, the company said in a statement.

“This crucial step is necessary to adjust the existing debt repayment profile. The proposal is extended to all noteholders, taking into account the Company’s present situation, with the aim of progressing towards capital injection that will restore business stability and continuity.

“Subject to agreement from bondholders to this consent solicitation, and obtaining required regulatory approvals, SHUAA Capital intends to convene a general assembly of shareholders to approve increasing its capital in order to achieve a sustainable capital structure for the company.

"The company’s objective with this consent solicitation is to right-size its balance sheet and facilitate the participation of new capital into the business. The proposal also offers the best available option to noteholders by offering cash settlement and the opportunity to participate in the equity of the company.”