Further to the Company’s announcement of 19 December 2014, following the downgrading of the Company’s rating by the rating agencies ‘Midroog’ (a subsidiary of Moody’s Investor Services) and ‘Maalot S & P’ (a subsidiary of Standard & Poor’s Rating Services), Mirland has announced a change in its interest rates on its bonds.
From 18 December 2014, the annual interest rate on its Series C and D bonds increases by 0.5% per annum (the maximum permitted increase under the original bond terms). The annual interest rate on the Company’s Series E and F Bonds increases by 1% per annum (again the maximum allowed). If they get upgraded again then there is scope to reduce the interest rates again.
A & B bondholders have agreed that he repayment of the principal and interest to the holders of series A and B bonds, set for 31 December 2014, will be temporarily postponed until 1 February 2015 in order to allow the parties to maintain a constructive dialogue. This period may be extended with the consent of the bondholders’ trustees and/or by resolution of the bondholders. Mirland also agreed to transfer US$11m into a trust account.
A further announcement will be made in due course.
MLD : Mirland changes bond terms