Trinidad Cement Limited has repaid all of its previous lenders using funds from short-term loans in the amount of US$245 million, together with cash from its recent Rights Issue and cash generated from operations. The company has secured a 9-month loan facility from Citibank and Credit Suisse. Over the coming weeks, TCL together with Credit Suisse and Citibank will be approaching both the local and international markets to secure longer-term financing that will bring the company to the final stage of the reorganisation of the capital structure.
Some of the immediate benefits from the refinancing are:
1. Debt reduction from prepayment of previous lenders of US$31 million.
2. A reduction in financing costs in the form of quarterly interest savings of up to US$1.7 million.
3. A stronger balance sheet, with debt that has gone down from 4.2x EBITDA to 3.5x EBITDA.
Prior to a media conference to announce the positive developments, Chairman Wilfred Espinet stated, “We are very confident that the capital reorganisation, together with the operational changes that are also advancing, have already started to positively impact our shareholder value and we are looking forward to being able to maximise the value creation capabilities of TCL for the benefit of our shareholders, employees, customers and other stakeholders”.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/19052015/trinidad-cement-restructures-financing-867/