JCR-VIS Credit Rating Company Limited (JCR-VIS) has converted 'preliminary' medium to long-term rating of 'A-' (Single A Minus) assigned to the second tranche of the proposed privately placed TFCs of Rs 100 million of Al-Noor Sugar Mills Ltd (ASML).
The outlook on the rating is 'Stable'.
The tenor of the TFC will be 5 years while principal repayment will be made in five equal semiannual installments after an initial grace period on principal redemption of 30 months. Along with the general charge on assets of the Medium Density Fibre Boards (MDFB) division with 25 percent margin, the management has also committed to provide guarantee from a minimum 'A' rated bank amounting to Rs 28.5 million.
In case the guarantee cannot be procured/renewed, ASML will open an escrow account under lien of the trustee and route the sale proceeds of its MDFB division through it.
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