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M&R reaches debt repayment agreement with banking consortium

30th August 2024

By: Darren Parker

Creamer Media Contributing Editor Online

     

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JSE-listed Murray & Roberts (M&R) has reached an agreement with a consortium of South African banks to repay R409-million in debt. The debt, which peaked at about R2-billion in April 2023, has been significantly reduced through a deleveraging plan agreed upon by the company and the consortium.

A credit-approved term sheet has now been signed, which provides for the remaining debt to be repaid by January 31, 2026.

M&R said on August 30 that it would now begin the process of disposing of noncore assets to meet its obligations to its banking consortium. These assets have been independently valued and collectively exceed the outstanding debt.

The company said shareholder approval would be sought, if needed, at the appropriate time.

“The board remains committed to refinance its South African debt to the banking consortium and negotiations with potential funders are continuing. Should the refinancing process be successful, it will obviate the need for the disposal of assets,” M&R said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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