Thursday, Oct 09, 2003
MARC has assigned a BBB rating to Mithril Bhd’s (Mithril) Redeemable Convertible Secured Loan Stockc (RCSLS).
The rating of BBB assigned reflects the future businesses of the company; a tight underlying issue structure; and moderate pro- forma debt leverage upon the finalization of the restructuring exercise. The rating is, however, constrained by Mithril’s exposure to the manufacturing industry, in particular the brick manufacturing business.
Mithril was incorporated as a shell company in April 2002 to facilitate the proposed restructuring exercise of Tajo, which is an affected listed issuer pursuant to the KLSE’s Practice Note 4/2001 (PN4/2001). The restructuring exercise involves the proposed capital reconstruction and cancellation of the share premium account of Tajo; scheme of arrangement; fund raising exercise (including the issuance of the RCSLS); acquisition of Saferay (M) Sdn Bhd (Saferay) & Menara MAA in Kota Kinabalu and Kuching; and debt settlement of Tajo’s secured and unsecured creditors. Proceeds from the RCSLS as well as ICULS issues will be utilized to purchase the two Menara MAA. The holders will have the option to convert the RCSLS into Mithril’s ordinary shares from the beginning of the second year to the end of the eighth year.
Upon the completion of the restructuring exercise, Mithril will hold 100% stake in Tajo and assume the latter’s listing status.
Saferay’s vendors have provided a guarantee that the aggregate post-tax profit of Saferay shall not be less than RM18 million for the next three financial years (30 April 2003 – 30 April 2005). Malaysian Assurance Alliance Berhad (MAA); the building owner of Menara MAA in Kota Kinabalu and Kuching, will grant Mithril & Tajo a five-year fixed term lease that would provide a stable income stream to Mithril.
The rating of BBB assigned reflects the future businesses of the company; a tight underlying issue structure; and moderate pro- forma debt leverage upon the finalization of the restructuring exercise. The rating is, however, constrained by Mithril’s exposure to the manufacturing industry, in particular the brick manufacturing business.
Mithril was incorporated as a shell company in April 2002 to facilitate the proposed restructuring exercise of Tajo, which is an affected listed issuer pursuant to the KLSE’s Practice Note 4/2001 (PN4/2001). The restructuring exercise involves the proposed capital reconstruction and cancellation of the share premium account of Tajo; scheme of arrangement; fund raising exercise (including the issuance of the RCSLS); acquisition of Saferay (M) Sdn Bhd (Saferay) & Menara MAA in Kota Kinabalu and Kuching; and debt settlement of Tajo’s secured and unsecured creditors. Proceeds from the RCSLS as well as ICULS issues will be utilized to purchase the two Menara MAA. The holders will have the option to convert the RCSLS into Mithril’s ordinary shares from the beginning of the second year to the end of the eighth year.
Upon the completion of the restructuring exercise, Mithril will hold 100% stake in Tajo and assume the latter’s listing status.
Saferay’s vendors have provided a guarantee that the aggregate post-tax profit of Saferay shall not be less than RM18 million for the next three financial years (30 April 2003 – 30 April 2005). Malaysian Assurance Alliance Berhad (MAA); the building owner of Menara MAA in Kota Kinabalu and Kuching, will grant Mithril & Tajo a five-year fixed term lease that would provide a stable income stream to Mithril.