TransCentury thrown lifeline, settles with bondholders

TransCentury thrown lifeline, settles with bondholders

Investment firm TransCentury has been handed a lifeline, with bondholders agreeing to reduce debt owed to them by half.

The bondholders have accepted to have the debt owed to them reduced to USD40 million (Sh4 billion) down from $80 million (Sh8 billion) but no details have been given about how the deal was reached.

TransCentury’s Sh8 billion bond, taken by its Mauritian Subsidiary, was coming for maturity on Friday.

The move comes just a week after Kuramo Capital injected USD20 million (Sh2 billion) in equity into the investment firm.

“Our experience in sub-Saharan Africa, underlined by our commitment to building and cultivating local market leaders, aligns well with TransCentury Group’s strategy. We are delighted to partner with one of Africa’s most prominent investment companies,” Kumwaro Capital co Chief Executive Shaka Kariuki said in a statement.

TransCentury says the process of raising the balance is ongoing and the “bondholders are comfortable with the structure in place to retire the outstanding total agreed debt.

The majority bondholders had last week, through their advisor Coulson Harney, come up with a list of demands to TransCentury seeking Sh4 billion in cash as well as conversion of their debt into a stake in the company.

But it now appears that bondholders have settled on a repayment timetable with the investment firm.

“The majority bondholders are pleased to have reached an amicable and well-structured settlement with TransCentury Group,” Paras Shah, a partner at Coulson Harney said.

TransCentury says the process to raise the balance is ongoing, but is however still subject to regulatory approval.

“This agreement validates the confidence Kuramo and other investors have in TransCentury and reflects our commitment to maximizing investor value,” TransCentury Chairman Zeph Mbugua said.

TransCentury is currently valued at Sh1.7 billion with net assets in the region of Sh3.6 billion. This reality meant the investment firm was in a race against time to restructure its debt and agree with the bondholders.

The Sh8 billion convertible bond was issued in 2011 before TransCentury went public, by its subsidiary TransCentury Mauritius

Tags:

TransCentury bond debt

Want to send us a story? Submit on Wananchi Reporting on the Citizen Digital App or Send an email to wananchi@royalmedia.co.ke or Send an SMS to 25170 or WhatsApp on 0743570000

Leave a Comment

Comments

No comments yet.

latest stories