MTD Walkers clears debenture hurdle

MTD Walkers Plc, 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, has restructured its debenture obligations.

MTD Walkers Plc, with the support of over 75% of the debenture holders, cleared the hurdle of the debenture payment. 

The company, which had about Rs. 2.1 billion outstanding on the debentures along with Rs. 149 million 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 up to maturity. 

As part of the restructuring, 49.04% of the Type A Debentures was 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 buyouts in full. This restructuring was done to better align the company’s debt obligations with cash flows from its ongoing projects.