RHB restructures borrowings

  • Business
  • Thursday, 02 Jan 2003

RASHID Hussain Bhd (RHB) has successfully completed the restructuring of its short-term borrowings totalling RM840mil into facilities with longer term maturities comprising RM280mil revolving credit facilities with tenures of three years, RM200mil bank guaranteed bonds with tenures of 5 years and RM360mil term loan facilities with tenures of seven years.  

A statement from RHB said that it had also successfully fulfilled all conditions precedent for the restructuring of its US$200mil exchangeable bonds. Meanwhile, Malaysian Resources Corp Bhd (MRCB) has announced the completion of the sale of its 22.7% stake in RHB for RM504.6mil. 

Following the disposal, Shahril Ridza Ridzuan and Datuk Zahari Omar, MRCB’s nominees on the RHB board, have tendered their resignation as directors of RHB with immediate effect. 

MRCB said the proceeds from the disposal had been utilised to repay its RM465mil loan provided by a consortium of lenders. Borrowings at MRCB have fallen to RM50mil at the company level, resulting in estimated interest savings of RM29mil per annum. 

The completion of the disposal will enable the restructuring scheme involving the de-merger exercise of MRCB and its media group, The New Straits Times Press (M) Bhd (NSTP) and Sistem Televisyen Malaysia BHd (TV3), to be completed as scheduled early this year.  

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