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+--- Thread: Grenada reaches restructuring agreement in principle with bondholders (/thread-24189.html)
Grenada reaches restructuring agreement in principle with bondholders - chairman - 04-12-2015
ST GEORGE’S, Grenada -- The government of Grenada has reached an agreement in principle with the Steering Committee of Grenada Bondholders on the key financial terms that will apply to the forthcoming restructuring of its US and EC Dollar Bonds due 2025.
The key financial terms that have been agreed in principle include an overall principal reduction of 50%, to be phased in in two stages.
The new bonds to be issued in exchange for the US and EC Dollar Bonds due 2025 will carry a coupon of 7.0% per annum and will have an overall tenor of 15 years, with the principal balance repayable in 29 equal and semi-annual installments commencing March 2016 and ending March 2030. Past due and accrued interest is to be capitalised in full.
Half of the agreed principal reduction will take effect up-front, with the remaining half to take effect upon the successful completion of the sixth review of Grenada’s existing Extended Credit Facility (ECF) arrangement with the International Monetary Fund.
As part of the agreement, bondholders will receive a portion of revenues that may be generated by Grenada’s citizenship by investment programme after the expiry of the ECF. Grenada and the Committee are also considering the inclusion of a ‘hurricane clause’ in the new instruments.
Both Grenada and the Committee are now discussing the documentation that will govern the new bonds that will be offered by Grenada in exchange for the existing instruments.
Once the documentation has been finalised, Grenada will launch an exchange offer to implement the restructuring, most likely during the course of the second quarter of 2015. Further information regarding the terms of the restructuring will become available at that point.
1) Total debt owed by Grenada to United States (US) and Eastern Caribbean (EC) bondholders on Notes due 2025 is US$262 million (EC$707.4 million).
(2) A 50% haircut will mean a reduction of US$131 million (EC$353.7 million ) which is 19% of Grenada’s Gross Domestic Product (GDP).
(3) The bondholders comprise institutional investors in the United States, United Kingdom and the Caribbean
Re: Grenada reaches restructuring agreement in principle with bondholders - ketchim - 04-12-2015
WTH ! TEST match cricket is there in a week ! :-[
Re: Grenada reaches restructuring agreement in principle with bondholders - boquiesse - 04-12-2015
Quote:[size=1.35em]HURRICANE CLAUSE[/size][size=1.35em]
The sovereign is also in discussions with bondholders over the inclusion of a "hurricane clause" in the terms of the new bonds, which could allow a moratorium on debt payments in the event of a natural disaster wreaking havoc through the island.
[/size][size=1.35em]Grenada said it expected to complete the bond restructuring through an exchange offer in the second quarter of 2015, once the documentation for the new notes had been finalised.[/size][size=1.35em]
The island nation defaulted on a US$193m 2025 international bond issue and on local bonds with the same maturity in early 2013, after a series of hurricanes and the global financial crisis devastated its [/size][size=1.35em]economy.[/size]
Re: Grenada reaches restructuring agreement in principle with bondholders - mapoui - 04-12-2015
I have to laff. when will grenada get up from under dis.. ::LOL:: ::LOL:: ::LOL:: ::LOL::
debt on top of debt on top of debt......
Re: Grenada reaches restructuring agreement in principle with bondholders - ketchim - 04-13-2015
After the 2nd TEST : Revenues ! ;D
Re: Grenada reaches restructuring agreement in principle with bondholders - chairman - 04-13-2015
sell a lot of nutmegs?