MESC signs debt-restructuring agreement with banks

Middle East Specialized Cables Co. (MESC) inked today a Sharia-compliant debt rescheduling agreement with a consortium of banks to reschedule SAR 94.1 million out of its SAR 308 million debt, the company said in a bourse filing.

The consortium includes Saudi British Bank (SABB), Al Rajhi Banking & Investment Corp, Arab National Bank (ANB), Banque Saudi Fransi (BSF) and Riyad Bank,

The agreement is aimed to go in line with the company’s cash flows. It includes a grace period of two years and a margin of preference.

The debt-restructuring agreement will have a positive impact on the company over the next four years.

The agreement is secured by a promissory note, some assets and some insurance proceeds and will be valid until Dec. 15, 2023, MESC said, adding no related parties are involved in the deal.

In November 2018, the company inked a debt-rescheduling agreement with a consortium of banks, as the credit facility tenure will be extended until April 30, 2019, instead of Oct. 31, 2018. A total of SAR 268.9 million will be rescheduled.