Listed ICT group, Gijima says it has secured the extension of its long-term debtors securitisation funding programme, initiated in July 2006.
The company issued R300 million class A secured debentures to investors in the capital markets.
The R300 million class A debentures comprise R150 million class A1 debentures maturing on 30 June 2015, and R150 million class A2 debentures maturing on 30 June 2012.
The programme’s transaction documentation makes provision for the extension of maturing debentures on or before the relevant maturity dates, the group said.
“Gijima has secured written confirmation from the existing investors in the R150 million Class A2 secured debentures maturing on 30 June 2012 that these investors have elected to subscribe for a new issue of R150 million class A debentures,” Gijima said in a statement.
The salient terms of the new issue of Class A debentures are the following:
- Amount: R150 million class A secured debentures;
- Duration: 5 years, with a maturity date of 30 June 2017;
- Interest convention: Non-amortising interest only; capital bullet on maturity;
- Interest rate: a fixed interest rate linked to the applicable 5 year benchmark at the date of issue.
Gijima said that the R150 million class A1 debentures, which are scheduled to mature on 31 June
2015 remain in issue and are unaffected by the extension of the programme for a further 5 year period. The Company will assess its funding requirements prior to the maturity of the class A1 debentures on 30 June 2015.
The group advised its shareholders to continue to exercise caution when dealing in its shares until a full announcement is made.