JOHANNESBURG - AECI Ltd, a South African chemicals group, announced today that it has successfully obtained consent from its note holders to release Much Asphalt from its guarantor obligations. This decision follows a request for written consent issued on November 4, 2024, and involves changes to the terms and conditions of the outstanding notes.
The company sought approval through two extraordinary resolutions. The first resolution was for the unconditional release and discharge of Much Asphalt, as the original guarantor, from its obligations under the terms and conditions of the note holders' guarantee. The second resolution, contingent on the first's passage, was to amend and restate the terms and conditions in the programme memorandum and the note holders' guarantee to reflect the release of Much Asphalt as an original guarantor. It also included any consequential changes to the applicable pricing supplements of all notes outstanding.
The voting results indicated a strong consensus among note holders, with both resolutions receiving 92.62% approval for the AECI05 class of debt securities and 89.17% for the AECI06 class. The total value of notes outstanding for AECI05 is R535 million, and for AECI06, R465 million. The votes were tallied against the total nominal amount of debt securities affected by the amendments, and no votes were cast against or abstained from either resolution.
With the requisite majorities achieved, AECI confirmed that both resolutions have been passed. This corporate action simplifies the company's guarantee structure and potentially alters the risk profile for the note holders.
The debt sponsor for AECI is Questco Proprietary Limited. The information provided is based on a press release statement from AECI Ltd.
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