Drake & Scull secures new credit lines for ongoing projects
Drake & Scull International (DSI) has secured new credit lines and working capital facilities for its ongoing and new projects portfolio with continued support from Tabarak Investment
Drake & Scull International (DSI) has secured new credit lines and working capital facilities for its ongoing and new projects portfolio with continued support from Tabarak Investment.
The company also announced the completion of the restructuring of its corporate general bank debt in the UAE, according to a statement.
DSI reached a consensual agreement with nine regional and local banks in late 2017 to refinance $154m (AED566m), which comprises 56% of its total corporate general debt standing at $291m (AED1.07bn) as of 30 September, 2017.
The tenor and the maturity of the corporate general debt has been extended and re-termed on average for three years.
Tabarak Investment has said that it is moving ahead with its plans to support the operations of DSI to achieve full operational recovery leading to sustainable growth, the statement added.
Rabih Abou Diwan, investor relations director, DSI, said: “The latest deal with the Banks reflects the confidence in the DSI turnaround plan, the resilience of the Group’s business model and the positive outlook of the Company in the MEP sector, despite the cyclical challenges that impacted the regional construction industry.
“Our main objective is to drive a consensual restructuring plan with all our creditors across the region to rebalance our capital structure to be more efficient and conducive for our business plan and future prospects.”
The remaining tranche of the company’s corporate general debt which includes the $120m (AED440m) Sukuk will mature in November 2019.
The company will initiate talks with its sukuk holders to refinance this tranche in the second half of the fiscal year 2018.
As of 30 September, 2017, the total bank debt of the group stands at $795m (AED2.92bn), corporate general debt and projects debt comprising 34% and 66% of total bank debt respectively.
Another upcoming strategic priority of the company's plan include the restructuring and refinancing of its projects debt with the initial focus on approximately $272m (AED1bn) of funded projects debt in Saudi Arabia.
DSI is in advanced talks with its creditors in Saudi Arabia and expects to complete the refinancing of its Saudi projects debt in the first quarter of the year.