Renaissance Services completes 100% repurchase/redemption of Perpetual Notes

Muscat: Renaissance Services (the ‘Company’) announced the successful repurchase/redemption of 100% of its dual currency Step-Up Subordinated Perpetual Notes (‘P Notes’) of $125.5 million (OMR 48.3 million) issued by its wholly-owned foreign subsidiary Renaissance International Limited.

The company issued P Notes in July 2015 to fund the buyback of its Mandatory Convertible Bonds. The issuance, at the time, was a ‘first of a kind’ transaction by an Omani corporate. The P Notes were subscribed by local and regional investors which included government-related institutions, banks and corporates. The P Notes carried a coupon rate of 7.9% until the first call date of July 2020 with a step-up coupon thereafter.

In line with its stated objectives to de-risk the company and to deleverage its balance sheet following the divestment of Topaz Energy and Marine, the company has now completed the repurchase/redemption before the first call date.

Vishal Goenka, CFO said, “The entire P Note transaction from inception to repurchase is a testimony to the faith and confidence of all our investors in the company. Following the repurchase/redemption of P Notes and prepayment of high interest-bearing loans, the company will have a stronger balance sheet, an increase in its Earnings Per Share (EPS), and better cash flows. This will allow the company to reward shareholders and enhance its ability to invest in future growth opportunities accretive to long term value for Renaissance’ shareholders. We also thank all our advisers for their support and commitment.”

NBO’s ACEO Sayyid Wasfi Jamshid Al Said, as Lead Manager, said, “The liability management carried out by the company through the repurchase of P Notes is an important milestone for the company. We are pleased to have acted as the lead manager for the transaction and it is very satisfying to have assisted Renaissance in achieving its certain key commercial objectives. Renaissance is an important client for NBO and over the years, we have established long term relationship with them. We have been the trusted partner of Renaissance on the path of progress, as a lender, advisor and lead manager on several transactions of strategic importance. We thank the Company and wish them all the best for all their projects and plans.”

Samir Fancy, chairman, “On behalf of the Renaissance Board we would like to thank NBO for their outstanding execution of this transaction which is the first of its kind in Corporate Oman. Additionally, our appreciation to all our investors and particularly Bank Sohar, NBO, Bank Muscat and the Ministry of Defence Pension Fund. This is the final step of our deleveraging strategy on our journey to consolidate our position as Oman’s premier service platform. The company is particularly excited about the nation’s Public Private Partnership (PPP) programme, which abounds with opportunities and sits perfectly with our track record and renewed balance sheet strength.“

Other key advisers for the company in the repurchase /redemption of the P Notes were The Bank of New York Mellon as Custodial Agent and Trowers and Hamlins as legal adviser.