Refinancing Update & Proposed CULS Holder Payment
APQ Global Limited
("APQ Global" or the "Company")
Refinancing Update & Proposed Initial Payment to CULS Holders
Further to the Company's 6th September 2024 announcement in connection with the publication of proposals and the convening of a meeting of CULS Holders for the extension of the settlement date for the CULS, the Company provides the following update.
In response to feedback from CULS Holders on the proposals APQ Global provides some additional information on Delphos, the financial advisory business for emerging markets private credit that is wholly owned by the Company, an overview on the Company's efforts to date to refinance the CULS, and a liquidity update and proposed amendment to the terms of the proposals to CULS holders which, subject to CULS Holders approving the proposals, would involve an initial payment to CULS Holders on the CULS maturity date.
Delphos
Since the Company acquired Delphos in 2022, it has invested $12.45m in cash contributions to Delphos entities. The table below sets out a schedule of these cash contributions per quarter:
|
USD ('000) |
2022 Q2 |
2022 Q3 |
2022 Q4 |
2023 Q1 |
2023 Q2 |
2023 Q3 |
2023 Q4 |
2024 Q1 |
2024 Q2 |
2024 Q3 |
Total |
|
Working Capital |
125 |
290 |
1,768 |
985 |
1,605 |
2,262 |
- 254 |
- 1,759 |
2,084 |
826 |
7,930 |
|
Equity |
- |
- |
- |
350 |
150 |
329 |
3,091 |
250 |
250 |
100 |
4,520 |
|
Total Cash Contributions |
125 |
290 |
1,768 |
1,335 |
1,755 |
2,591 |
2,837 |
- 1,509 |
2,334 |
926 |
12,450 |
Source: Management
As stated in the 6th September announcement, Delphos is currently executing around 40 transactions in around 20 countries and the portfolio is diversified across geographies (Africa, Central Asia, Middle East, Latin America and South-East Asia) and sectors (infrastructure, renewables, financial services and funds).
Overview of CULS refinancing discussions
Over the past two months the Company has engaged with over 10 counterparties for refinancing the CULS, including:
· A bank with a focus on emerging markets. An NDA has been signed and information is being exchanged.
· A private markets fund based in Latin America with a specific strategy to develop a global origination platform. An NDA has been signed and information is being exchanged.
· An EM private markets fund backed by a large EM bank.
· Boston-based emerging market funds looking to grow in EM private markets.
· Various other EM-focused funds in the US and Europe.
Pending the publication of its FY23 accounts and the resumption of trading in the Company's ordinary shares and CULS, the Company intends to commence negotiating formal terms with counterparties expediently with the aim of securing a financing facility for the Company by FY24 year-end.
Liquidity Update and Proposed Initial Payment to CULS Holders
The Company confirms that its cash balance currently stands at $9.6m. The Company is required to post collateral of $3.0m towards its GBPUSD currency hedge of the CULS liability. Additionally, the Company believes that it is prudent to reserve $4.0m as a working capital buffer.
The Company is committed to repaying as much capital as possible to CULS Holders as quickly as possible over the next six months as income from Delphos' operations and the proposed refinancing is received. To ensure full repayment of the premium redemption and increased coupon, it is imperative that the Company retains its currency hedge of the CULS liability and retains sufficient working capital to monetize its expected cashflows from operations.
In response to feedback from CULS Holders, the Company also proposes that, if the proposals set out in the Circular are approved at the meeting of the CULS Holders on 30th September 2024, it will pay, on the Maturity Date of 30th September 2024, an amount equal to $2.7m (£2.0m), representing approximately 6.76 per cent. of the aggregate redemption proceeds of the CULS at the Maturity Date (the "Initial Payment"). The Initial Payment will be made to the Trustee for onward payment to CULS Holders. If the Resolution to be proposed at the Meeting of CULS Holders is passed, the Trust Deed will be amended as set out in the Circular. The amendments would take effect from completion of the Initial Payment and would therefore be in respect of the reduced outstanding principal amount of CULS.
Terms used and not defined in this announcement shall have the meanings given to them in the Circular published on 6th September 2024.
- End -
For further enquiries, please contact:
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APQ Global Limited |
020 3478 9708 |
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Singer Capital Markets - Nominated Adviser and Broker |
020 7496 3000 |
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Suntera - TISE sponsor |
01481 737 277 |
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Investor Relations IR@APQGlobal.com |
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Notes to Editors
APQ Global Limited
APQ Global (ticker: APQ LN) is an investment company incorporated in Guernsey. The Company focuses its investment activities globally (in Asia, Latin America, Eastern Europe, the Middle East, Africa and the Channel Islands, particularly). The objective of the Company is to steadily grow its earnings to seek to deliver attractive returns and capital growth through a combination of building growing businesses as well as earning revenue from income generating operating activities in capital markets1. APQ Global run a well-diversified and liquid portfolio, take strategic stakes in selected businesses and plan to take operational control of companies through the acquisition of minority and majority stakes in companies with a focus on emerging markets. For more information, please visit apqglobal.com.
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