JSE-listed packaging company Nampak has successfully concluded new terms for its term loan revolving credit facility (RCF) and US private placement (USPP) lenders, extending the repayment of R1.35-billion by March 31 with new debt repayment requirements.
As such, the RCF and USPP debt maturity dates have been extended from December 31, 2023 and May 28, 2023, respectively, to June 30, 2024 for both loans – at an extension fee of 0.43% of the debt due.
In addition, debt due to the USPP will be subject to an increase from the originally agreed ten-year fixed term funding rate of 5.25% of 2013, to a fixed interest rate of 12% a year from April 1.
Debt due to the RCF facilities will be subject to an increase in interest rates of 0.86% a year from April 1. This is subject to a number of conditions precedent, the most important being an agreed asset disposal plan, the implementation of specified steps towards the provision of a full security package and the entering into of long-form agreements to be fulfilled on or before May 15, or such later date as is agreed between the parties.
To meet the debt repayment requirements, Nampak will host an extraordinary general meeting of shareholders to approve resolutions relating to a rights offer. The company will also have to launch the requisite rights offer such that the net proceeds from the rights offer are available to settle debt on, or before, September 30.
Nampak is also required to make debt repayments of R350-million to the lenders on, or before, September 30, in addition to any proceeds from the rights offer and any business disposal proceeds.
Proceeds from disposals of assets amounting to at least R250-million are required to be received by no later than December 31, with such proceeds to be used to repay debt.
In addition, Nampak is required to finalise credit-approved term sheets for the refinancing of the group’s long-term funding by June 15.