TRG Pakistan announces completion of Afiniti’s recapitalisation

TRG Pakistan, being a shareholder in The Resource Group International (TRGI), announced on Tuesday that its indirect and TRGI’s portfolio company Afiniti, based in Washington DC, has completed its financial restructuring and recapitalization transaction with its secured lenders, led by Vista Credit Partners.

TRG Pakistan shared the development in its notice to the Pakistan Stock Exchange (PSX).

“As part of the transaction, as contemplated by the definitive transaction agreements, TRGI has invested $15 million in the recapitalized Afiniti in the form of a second-lien convertible debt instrument, pari passu with other secured lenders who own the same convertible debt,” read the notice.

“At closing, the company’s indirect economic interest in Afiniti, through TRGI, is expected to be substantially retained in percentage terms, on an as-converted, fully-diluted basis, subject to certain adjustments from rights issue subscription and the future value of unvested warrants,” it added.

The transaction enables Afiniti to move forward with a stronger financial foundation to accelerate growth, Afiniti said in a statement

“The close of our recapitalization transaction provides exciting opportunities for Afiniti to further invest in next-generation technologies and unlock new avenues for growth,” said Hassan Afzal, Chief Executive Officer of Afiniti.

“With additional resources, we will have renewed flexibility to build on our strengths, expand our capabilities and continue delivering cutting-edge AI solutions that empower our customers to enhance their customer experience journeys. This is a pivotal moment in Afiniti’s evolution, and we are thrilled about all the possibilities ahead.”

This transaction, initially announced by TRG Pakistan on September 20, 2024, was recently completed following court approvals in Bermuda and the Chapter 15 proceeding in the US.

Back then, TRG Pakistan said Afiniti’s restructuring plan included significantly reducing its current senior debt and a multi-year debt maturity extension. It will also result in lower cash interest expense and recapitalize its balance sheet.