Marawila Resorts PLC, a member of the Colombo Fort Lands Group of Companies operating the four-star Club Palm Bay at Marawila, is seeking to raise Rs. 367.5 million equity capital through a one for one rights issue of 122.5 million new shares priced at three rupees each to liquidate part of its outstanding interest bearing debt.
The company which has said that the issue is not underwritten has summoned an EGM on June 16 to seek shareholder approval for a resolution proposing the rights issue. A circular in this connection has not indicated whether related companies that are the major shareholders of Marawila will take up their rights.
According to share trading data provided, Marawila had traded between a high of Rs. 6.10 and a low of Rs. 3.20 between Feb. and April this year. The share closed at Rs. 3.50 at the CSE on Friday.
The company intends settling Rs. 367.5 million of the existing debt of Rs. 647.27 million out of the rights issue proceeds with settlement "to the extent of which the issue is subscribed" with disbursement within two weeks of acceptance of payment.
Two of the lenders are related companies, Colombo Fort Hotels owned Rs. 141.9 million at the average weighted prime lending rate (AWPLR) plus 2% and Lankem Tea and Rubber Plantations owed Rs. 39.6 million at the same rate.
There is also an overdraft facility of Rs. 50 million from HNB, also at the same rate, and a facility of Rs. 415.8 million from HNB’s Foreign Currency Banking Unit at 3-month LIBOR plus 5% with a 6% floor.
HNB’s FCBU loan will not be totally cleared (in the event of a full subscription) with slightly over Rs. 136 million to be repaid.
www.island.lk
The company which has said that the issue is not underwritten has summoned an EGM on June 16 to seek shareholder approval for a resolution proposing the rights issue. A circular in this connection has not indicated whether related companies that are the major shareholders of Marawila will take up their rights.
According to share trading data provided, Marawila had traded between a high of Rs. 6.10 and a low of Rs. 3.20 between Feb. and April this year. The share closed at Rs. 3.50 at the CSE on Friday.
The company intends settling Rs. 367.5 million of the existing debt of Rs. 647.27 million out of the rights issue proceeds with settlement "to the extent of which the issue is subscribed" with disbursement within two weeks of acceptance of payment.
Two of the lenders are related companies, Colombo Fort Hotels owned Rs. 141.9 million at the average weighted prime lending rate (AWPLR) plus 2% and Lankem Tea and Rubber Plantations owed Rs. 39.6 million at the same rate.
There is also an overdraft facility of Rs. 50 million from HNB, also at the same rate, and a facility of Rs. 415.8 million from HNB’s Foreign Currency Banking Unit at 3-month LIBOR plus 5% with a 6% floor.
HNB’s FCBU loan will not be totally cleared (in the event of a full subscription) with slightly over Rs. 136 million to be repaid.
www.island.lk
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