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Shuaa Capital is to launch its exchange offer for its $150 million notes, 16 months after original expiration, exchanging up to $75 million in aggregated principal amount for UAE denominated mandatory convertible bonds (MCBs).
The Dubai-listed entity secured two extensions on the notes from October 2023 to March 31 2025 during its debt restructuring process, following the issuance of a senior unsecured 7.5% Reg S bond in October 2020.
Following the original maturity date, Shuaa has been preparing to issue MCBs in two tranches, the first to existing noteholders, the second to new investors.
The MCBs and the exchange offer were approved by shareholders at the Dubai-listed entity’s general assembly on Monday – the bonds will convert to equity after issuance at AED 0.32 per share.
The existing noteholder MCBs, for which the offer opens Wednesday, will be up to AED 275.5 million ($75 million).
The offer remains open until February 28, with indicative results to be announced on 3rd March and settlement to take place on or before 18th March.
The second tranche, to new investors, is of up to AED 150 million. The investment bank and asset manager previously announced it had had secured AED 85 million in commitments. New investor binding commitments include Abu Dhabi Securities Exchange-listed Eshraq Investments, of which it is the major shareholder, Al Baher Real Estate Development LLC and United Motors & Heavy Equipment Company LLC.
Shuaa announced a full year loss of AED 288.6 million for 2024 compared to AED 907 million in 2023, with revenue falling from AED 161 million to 88.5 million YoY.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
