Apr 2015 Financial News

TCL – Results of the Rights Issues

Apr 02, 2015

On March 31, 2015 at 4:00 p.m. Trinidad Cement Limited (TCL) closed its offer for the pro-rata Rights Issue of 124,882,568 new shares, which was open exclusively on the Trinidad and Tobago Stock Exchange.

Stakeholders are hereby advised of the following results of the Rights Issue:

1. 118 shareholders accepted the provisional allotment in whole;
2. 9 shareholders accepted the provisional allotment in part; and
3. 6,354 shareholders allowed the entitlement to the allotment to lapse.

The number of shares subscribed by eligible shareholders during the period for exercising pre-emptive rights in the Rights Issue was 51,817,920.

Pursuant to the Subscription Agreement dated February 09, 2015 between Sierra Trading and TCL, the main terms of which were published from February 10, 2015, Sierra Trading, as the backstop shareholder, purchased 73,064,648 excess shares in the Rights Issue, representing the remaining shares that had not been subscribed and fully paid up by eligible shareholders upon the expiry of the period for exercising pre-emptive rights.

Accordingly, the Rights Issue was fully subscribed.

The participation of Sierra Trading in the Rights Issue, through the exercise of its pre-emptive rights, as well as the purchase of the said excess shares under the Subscription Agreement, will result in Sierra Trading increasing its shareholding in TCL from 20% to 39.5%. The total amount subscribed by Sierra Trading in the Rights Issue was US$44,852,400.98 worth of new shares.

The total amount of capital raised in the Rights Issue was US$57,131,952.55. A condition precedent to the effectiveness of the terms and conditions of the Debt Restructuring agreements between TCL and its Creditors was for TCL to raise equity capital of a least US$50 million. Accordingly, this condition precedent has been met.

TCL intends to use the gross proceeds from the Rights Issue in the following priority:

1. Restructuring and transaction expenses;
2. Replenishment of working capital (settlement of long-outstanding payable balances including amounts due to employees);
3. Debt Service; and
4. Investment in capital expenditure.

An application has been made for the listing of 124,882,568 new shares on the Trinidad and Tobago Stock Exchange. Stakeholders will be advised of further details in this regard by separate notice.

This Notice is published pursuant to Section 64(1)(b) of the Trinidad and Tobago Securities Act, 2012.

April 2, 2015

Source:
The Trinidad and Tobago Stock Exchange Limited
Thursday April 2, 2015