UAE-based independent Dana Gas has reached an agreement with creditors to restructure its $1bn Sukuk. The move finalizes an “in-principle” arrangement announced in November (MEES, 9 November). The company had raised concerns when it missed an end-October deadline on repayment of the outstanding $920mn (MEES, 2 November).
The agreement specifies that the debt will be reduced from $1bn to $850mn via a $70mn cash payment and cancelation of $80mn of the Sukuk Dana holds itself. The remaining $850mn will be split into two tranches: A $425mn ordinary Sukuk and a $425mn convertible Sukuk, both with five year maturities. The profit paid on the two Sukuk will climb to 8% from the current 7.5%. The security package available to Sukuk holders will be enhanced by $300mn, said Dana, noting that it would be restricted to the company’s Egyptian and some UAE assets. To proceed with the restructuring, Dana needs the consent of its shareholders, current Sukuk holders and regulatory authorities. The company expects the transaction to be completed early 2Q13. It said it is assessing the possibility of an international listing for its upstream assets, which will “enhance value for both shareholders and Sukuk holders.” Dana shares are currently listed on the Abu Dhabi Securities Exchange. (CONTINUED - 270 WORDS)