MUSCAT, NOV 11 - Renaissance Services SAOG has announced the successful repurchase/redemption of 100 per cent of its dual currency Step-Up Subordinated Perpetual Notes of $125.5 million (RO 48.3 million) issued by its wholly owned foreign subsidiary Renaissance International Limited.
The Company issued P Notes in July 2015 to fund the buyback of its Mandatory Convertible Bonds. The issuance, at the time, was a ‘first of a kind’ transaction by an Omani corporate. The P Notes were subscribed by local and regional investors which included government related institutions, banks and corporates. The P Notes carried a coupon rate of 7.9 per cent until the first call date of July 2020 with a step-up coupon thereafter.
In line with its stated objectives to de-risk the Company and to deleverage its balance sheet following the divestment of Topaz Energy and Marine, the Company has now completed the repurchase/redemption prior to the first call date.
Vishal Goenka, CFO, said: “The entire P Note transaction from inception to repurchase is a testimony to the faith and confidence of all our investors in the Company. Following the repurchase/redemption of P Notes and prepayment of high interest-bearing loans, the Company will have a stronger balance sheet, an increase in its Earnings per share (EPS), and better cash flows. This will allow the company to reward shareholders and enhance its ability to invest in future growth opportunities accretive to long term value for Renaissance’ shareholders. We also thank all our advisors for their support and commitment.”
Sayyid Wasfi Jamshid al Said, ACEO – NBO (Lead Manager for the transaction), commented: “The liability management carried out by the Company through repurchase of P Notes is an important milestone for the Company. We are pleased to have acted as the Lead Manager for the transaction and it is very satisfying to have assisted Renaissance in achieving its certain key commercial objectives. Renaissance is an important client for NBO and over the years, we have established long term relationship with them.”
Samir Fancy, Chairman, Renaissance Services, added: “On behalf of the Renaissance Board we would like to thank NBO for their outstanding execution of this transaction which is the first of its kind in Corporate Oman. Additionally, our appreciation to all our investors and particularly Bank Sohar, NBO, Bank Muscat and the Ministry of Defence Pension Fund.
“This is the final step of our deleveraging strategy on our journey to consolidate our position as Oman’s premier service platform.”
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