Karachi, June 5, 2008: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned a preliminary medium to long term TFC rating of ‘A’ (Single ‘A’) to the proposed privately placed TFC issue of Rs. 1.7b of JDW Sugar Mills Limited. Outlook on the assigned rating is ‘Stable’.
The tenor of the instruments will be 6 years, inclusive of a grace period of 1.5 years. Principal repayment will be in 18 unequal quarterly installments, commencing from the twenty first month of drawdown. Repayments falling during the crushing season (March and December) will be of Rs. 113.33m each while payments in the off-season (June & September) will be of Rs. 75.55m each. The bond will be secured by pari passu hypothecation charge over all present and future fixed assets of JDW Sugar Mills Limited (JDWSML) and United Sugar Mills Limited (USML) along with 25% margin in addition to which first pari passu mortgage over land and building of JDWSML and USML will also be provided along with 25% margin. The security package also includes personal guarantees of sponsor directors of the company. In the absence of NOCs, disbursement will be made on a ranking charge which will be upgraded to pari passu within 90 days of first drawdown. In lieu of this, ratings will be finalized once the ranking charge has been upgraded to pari passu charge.
For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 501) or Ms. Sobia Maqbool (Ext: 506) at 5311861-70 (10 lines) or fax to 5311873.
President & CEO
Information herein was obtained from sources believed to be accurate and reliable; however,
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