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Noble Group to get US$100m trade finance facilities from minority shareholders
NOBLE Group has secured a binding commitment for US$100 million of trade finance facilities from a consortium of existing shareholders, the commodity trader announced on Friday before the market opened.
The consortium comprises Value Partners, Pinpoint Asset Management and other shareholders with a combined equity interest of 5 per cent who have irrevocably agreed to vote their interests in favour of Noble Group’s restructuring plan.
The extension of the additional US$100 million of three-year trade finance facilities to Noble remains subject to the execution of final detailed documentation.
Noble said that the finance facilities will provide for the expansion of its trading activities, particularly in high-growth opportunities identified in the liquefied natural gas (LNG) industry.
In exchange for the facilities, the consortium will receive US$7.5 million of new asset company bonds, US$7.5 million of new trading company bonds, US$10 million of new trading holding company bonds and an arrangement fee of US$5 million as the company undergoes a restructuring exercise.
Noble said that some US$7.5 million of new asset company bonds that were to be issued to its existing senior creditors will be re-allocated to this consortium. Its existing senior creditors will be issued an additional US$7.5 million in new trading company bonds. That will raise the total amount of new trading company bonds to US$700 million and the total amount of new trading holding company bonds to US$270 million.
The members of the consortium will also be offered US$25 million of new perpetual securities with a non-accumulative dividend of 2.5 per cent in exchange of some US$400 million perpetual securities they currently hold.
Noble said that it is working towards the launch of a scheme of arrangement now that creditors representing about 85 per cent of its senior claims have acceded to its restructuring support agreement.
Noble's shares last traded at 11.2 Singapore cents as at 9.40 am, up 0.8 Singapore cent.