Published: 26 August 2020
Net1 International – Further Shareholder Loan Agreed, Extension of Bridge Loans, Waivers & Update on Long Term Financing
Oslo, 26 August 2020 – Net1 International Holdings AS (“Net1 AS” or the “Group”, NOTC Ticker: Net1) announces additional shareholder liquidity of $2m in the form of a further short-term loan from Rasmussengruppen and Sampoerna. In addition, the Group secured an extension on its existing bridge loans with Rasmussengruppen & Sampoerna as well as waivers on defaults on certain covenants in the USD 40 million third party facility raised in May 2019 by Mobile Internet Holdings B.V., a Group subsidiary.
Attachments: Presentations titled “AGM Presentation & H1 Trading Update (Updated)” and “Net1 Indonesia Post Financing Strategy & Program Roll-Out”
NEW SHAREHOLDER FUNDING, EXTENSION OF EXPIRY DATES & WAIVERS ON DEFAULTS
The board of directors of Net1 Indonesia approved a new USD 2 million shareholder loan, secured on the shares owned by Net1 AS in its Dutch subsidiaries which hold its 52% economic interest in Net1 Philippines. This brings the total loans secured against these shares provided by Rasmussengruppen and Sampoerna to approx. USD 11.5 million. The expiry date of the full amount of these loans has been extended to 15 September 2020, whereupon Rasmussengruppen and Sampoerna will assess the situation of the long-term financing (please see below for an update).
In addition, the Group has secured waivers, with an expiry date until 30 September 2020 on covenant defaults it was going to incur on 30 August 2020 under the USD 40 million third party facility advanced to Mobile Internet Holdings B.V. Please refer to the Annual Report on our website for further details on this facility. The facility is primarily secured on the shares and assets of the Dutch holding companies for the Indonesian business (Net1 International Holdings B.V. and Mobile Internet Holdings B.V.) and Net1 Indonesia. The waiver provides further time for the Group to conclude the long-term financing. If an agreement on the long-term financing is reached it will, amongst other things, result in the amendment & roll-over of this existing USD 40 million loan and provide further capital to support the operations of Net1 Indonesia. Rasmussengruppen and Sampoerna have also indicated willingness to agree to extend their bridge loans to the Group for a period of up to 7 years on the provision that the contemplated long-term financing closes.
UPDATE ON LONG-TERM FINANCING
Please refer to slides 12 and 13 of the attached presentation “AGM Presentation & H1 Trading Update (Updated)”. The Group remains in discussions with existing and new third party lenders on the provision of a USD 70-75 million facility, as well as discussions with Rasmussengruppen and Sampoerna for additional funding in the form of new shareholder loans. These discussions have not yet resulted in any form of commitment, although we remain hopeful of receiving approvals on or before 30 September 2020. The Group expects the financing, if successful, to close in October 2020.
“The injection of short-term liquidity will enable our Indonesian business to maintain the promising trends it has shown in recent periods” said Amit Vithlani, Group CEO of Net1 AS. For a review of H1 2020 performance of Net1 Indonesia, please refer to the presentation entitled “AGM Presentation & H1 Trading Update (Updated)”.
“The long-term financing is critical to the continuation of our operations as, in addition to providing liquidity, it will support the post-financing strategy & roll out of Net1 Indonesia” added Vithlani. Please refer to the presentation entitled “Net1 Indonesia Post Financing Strategy & Program Roll-Out” for a review of Net1’s plans post financing.
“Whilst the long-term financing discussions continue to progress, we are continuing to pursue further growth in Net1 Indonesia. However, uncertainty remains as to whether we will secure the requisite commitments & approvals in respect of this financing in the coming weeks. Should we fail to secure significant progress in the discussions, the board of the Group will review the status and will make further announcements accordingly” said JD Fouchard, Chairman of Net1 AS.
ABOUT NET1 INTERNATIONAL
Net1 International has investments in 4G LTE operations in Philippines and Indonesia.
Philippines has a population of 104 million, and Net1 Philippines now has a spectrum portfolio consisting of: 20 MHz bandwidth on the LTE-enabled 450MHz frequency in addition to the 20MHz it owns in the 3.5GHz band. It also owns 200MHz on the 24450MHz-24650MHz band.
Indonesia has a population of 261 million, and Net1 Indonesia has a total 15MHz of bandwidth on the LTE-enabled 450MHz band.
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