MTD Walkers’ Debenture restructured with approval of over 75% of investors

MTD Walkers PLC has restructured its Debenture obligations with the support of over 75% of the Debenture Holders.

The company which had about LKR 2.1 Billion outstanding on the Debentures along with Rs. 149 Mn in Interest Payments has fully paid off the due Interest in line with the existing Trust Deed. 

According to the Disclosure made by the company to the Colombo Stock Exchange on 28 September 2018, the Type A Debenture interest rate was increased from 9.75% to 11.75% and Type B Debenture from 10.25% to 12.25% per annum upto maturity. As part of the restructuring, 49.04% of the Type A Debentures were purchased through the trading system of the Colombo Stock Exchange for Debenture holders who held over 100,000 of these Debentures. The balance Type A debentures were extended for another 12 months. Holders of Type A Debentures with 100,000 Debentures or less were offered buy outs in full. This restructuring was done to better align the Company’s Debt obligations with the cash flows from its ongoing projects.

MTD Walkers was supported by NDB Investment Bank, the Bank of Ceylon Trustees and Nithya Partners representing the interests of the Investors to the Debenture, and the internal Corporate Finance team.