Dana Gas successfully completes Sukuk refinancing

09/05/2013 10:00 AST

Dana Gas has completed the refinancing of the $1 billion Trust Certificates (Sukuk-al-Mudarabah) issued by Dana Gas Sukuk Limited.

This follows the overwhelming approvals to the refinancing plan received from both Sukuk Certificate holders and Share holderson 23 April 2013, the company said in an emailed media statement. The New Sukuk of $850 million ($425 million of convertible Sukuk and $425 million of Ordinary Sukuk) have been listed on the Global Exchange Market of the Irish Stock Exchange.

Dr. Adel Al-Sabeeh, Chairman of the Board of Dana Gas, said, “The completion of the financial restructuring is an important step and this will underpin our strategic growth plans in Kurdistan, Egypt and the Eastern Mediterranean. We would like to thank shareholders and Sukuk holders for their support and confidence in our business.”

Rashid Al-Jarwan, Executive Director and Acting Chief Executive Officer of Dana Gas said, “The restructuring process has now been formally completed and this puts Dana Gas in a stronger financial position. The Company can now look forward to pursuing its long term regional growth strategy with the renewed confidence of its key stakeholders.”

As previously announced, key transaction highlights are as follows:

Reduction in the Company’s outstanding debt from $1 billion to $850 million via $70 million cash pay-down and cancellation of another $80 million of the existing Sukuk already owned by the company.

Remaining $850 million split into two tranches, a $425 million seven per cent convertible Sukuk with a conversion price of AED 0.75 and a $425 million nine per cent ordinary Sukuk (together the new Sukuks) each with a five-year maturity to 31 October 2017, the combination of which will ensure that the potential dilution for shareholders remains substantially similar to current levels.

CPI Financial