New Capital Structure and Deployment Provides Solid and Stable Footing for Future Development
Hong Kong, Mar 24, 2014 - (ACN Newswire) - Pacific Andes International Holdings Limited and its subsidiaries ("Pacific Andes" or the "Group") today announced the successful completion of a series of transactions that will significantly enhance the Group's capital structure and deployment of capital.
Refinancing The Group's subsidiary, China Fishery Group Limited ("China Fishery") (SGX: B0Z.SI), has signed a term and revolving credit facility agreement for US$650 million with an international bank consortium comprising China CITIC Bank International Limited, Cooperatieve Centrale Raiffeisen Boerenleenbank B.A. (also known as Rabobank International), Hong Kong Branch, DBS Bank (Hong Kong) Limited, Standard Chartered Bank (Hong Kong) Limited and The Hongkong and Shanghai Banking Corporation Limited. Proceeds will be used to finance (i) the redemption of the senior notes of a total aggregate principal amount of US$250,000,000 issued on 10 February 2010 and 10 January 2013 by Corporacion Pesquera Inca, S.A.C. due 2017; (ii) the acquisition of all issued shares in the capital of Copeinca ASA by CFG Investment S.A.C. pursuant to an internal group restructuring exercise; (iii) the repayment or prepayment of the existing facilities of China Fishery; and (iv) the general corporate purposes of China Fishery.
With a maturity of 4 years, the new facility provides China Fishery with the opportunity to focus on consolidation and increasing the operational efficiency and effectiveness of its expanded operations.
In addition, the Group has announced the signing of a facility agreement for a 3.5 years term loan facility in the amount of US$100 million with Malayan Banking Berhad, Hong Kong Branch. The new loan will be used for general working capital requirements of the Pacific Andes Group, including refinancing of the existing debts of Pacific Andes.
"The successful completion of our refinancing marks an important step in the enhancement of the capital structure of the Group. We have been able to reduce our average interest expense, effectively extend the maturity of our debt, and gain greater operating flexibility to deliver on our objectives. Our target is to achieve a debt to equity ratio of 75% in the next three years," said Mr. Ng Joo Siang, Group Deputy Chairman and Managing Director.
"We appreciate that these banks have confirmed their support and endorsement for the Group's future direction and potential by providing these facilities. It allows us to continue to focus our efforts on business consolidation and increasing operational efficiency and effectiveness," Mr. Ng said.
Transition from Long Term Supply Agreements to spot purchase China Fishery has also decided not to renew one Long Term Supply Agreement and to terminate the remaining three Long Term Supply Agreements (the "LSAs") under its Contract Supply Business.
"As we have been structuring our expanded Group for future growth and setting in place an improved capital structure, we have reviewed where we deploy our capital to best capture the opportunities before us. Transitioning to spot purchase of fish allows us to redeploy the significant capital tied up in pre-payments under the LSA's towards reduction in China Fishery's gearing," said Mr. Ng.
Accordingly, China Fishery will continue to purchase fishery products from suppliers at spot market. Under the agreement with the Suppliers, approximately US$80 million will be returned to China Fishery by the end of April 2014, and the remaining balance of approximately US$162 million will be returned by March 2016, either in kind as fish or, if mutually agreed, as cash.
About Pacific Andes International Holdings Limited
Established in 1986 and listed on the Main Board of The Stock Exchange of Hong Kong Limited in 1994, Pacific Andes International Holdings Limited and its subsidiaries (1174.HK, "Pacific Andes" or the "Group") is a fully integrated group of companies with operations across the entire seafood value chain, which includes harvesting, sourcing, ocean logistics and transportation, food safety testing, processing, marketing and distribution of frozen fish products, as well as fishmeal and fish oil.
The Group's businesses span across the world with a particular emphasis on the People's Republic of China (the "PRC") and Peru. It has processing businesses and sizeable investments based in the PRC, Germany, France, the U.S. and Peru. Today, Pacific Andes stands among the world's largest fishery groups, producers of fishmeal and fish oil, suppliers of frozen fish into the PRC market and fish fillet producers.
Pacific Andes' resources development and supply chain management division, Pacific Andes Resources Development Limited, and its fishery and fish supply division, China Fishery Group Limited, have been listed on the Singapore Exchange Securities Trading Limited since 1996 and 2006, respectively. In 2013, the Group acquired Copeinca ASA, Peru's second largest fishing company.
Source: Pacific Andes International Holdings Limited
Contact:
Investor Contact Pacific Andes International Holdings Limited Katie Tsui Investor Relations Manager Tel: +852 2589 4191 Fax: +852 2858 2764 Email: katie.tsui@pacificandes.com Media Contact Strategic Financial Relations Limited Veron Ng Tel: +852 2864 4831 email: veron.ng@sprg.com.hk Keris Leung Tel: +852 2864 4863 email: keris.leung@sprg.com.hk Janet Fong Tel: +852 2864 4817 email: janet.fong@sprg.com.hk
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