Mar 2015 Financial News

TCL – Notice to Shareholders

Mar 27, 2015

In previous publications, Trinidad Cement Limited (“TCL”) advised of the multi-pronged approach of its Board of Directors towards returning the operation of the Company to stable value creation. Part of the approach included a detailed debt restructuring exercise. At the special meeting held on February 09, 2015, Shareholders were advised that TCL had reached an agreement in principle with its Lenders with respect to the restructuring of the debt. TCL is pleased to advise that on March 17, 2015, the Board of Directors considered the various draft restructuring agreements and passed resolutions approving (inter alia) the terms and conditions outlined therein. The said restructuring agreements were signed by TCL on March 24, 2015, and all related documents are expected to be fully executed by, and be effective from March 31, 2015. The main elements of the debt restructuring include:

1. Reduction of the interest rate on the outstanding debt by a percentage equivalent to the Additional Margin (currently 2%), the amount by which the interest rate increased when the Override Agreement became effective;
2. Forgiveness of the default moratorium interest from September 30, 2014 upon the implementation of the Amendment to the Override Agreement;
3. Adjustment to the amortizations of the debts based on TCL’s new cash flow projections;
4. The ability to prepay originally secured and unsecured debt on a discounted basis within 90 days of the effectiveness of the restructuring agreements as follows:
   
   a. Originally secured debt (excluding Arawak Cement Company Limited’s (ACCL’s) originally secured debt) – 5%;
   b. Originally unsecured debt (including ACCL’s originally secured debt) – 20% during the first 45 days and 10% during the following 45-day period.

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

Source:
The Trinidad and Tobago Stock Exchange Limited
Friday March 27, 2015