The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (29-April-2005)
   

PACRA Maintains Entity Ratings, Assigns TFC Ratings to
Azgard Nine Limited

 

 
Analyst
Ambreen Irfan
(+92-42-586 9504)
ambreen@pacra.com

 

 

 









 

 

 



 

 

 

 

Disclaimer
This press release is transmitted to you for this sole purpose of dissemination through your newspaper/magazine/agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to PACRA. However, PACRA has the sole right of distribution of its press releases for consideration or otherwise through any media.

  

The Pakistan Credit Rating Agency (PACRA) has maintained the long-term rating at “A” (Single A), and the short-term rating at “A1” (A One) of Azgard Nine Limited (ANL). Additionally, the ratings have been assigned a positive outlook . These ratings are applicable to senior unsecured creditors of the company. ANL's proposed secured TFC of PKR 2,000mln (with a green-shoe option of PKR 400mln) has been assigned a rating of “A+” (Single A Plus). These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payments of financial commitments.

ANL's ratings reflect the company's dynamic long-term vision, an outcome of its management's progressive efforts to transcend any cultural and geographical barriers to sales of its products. This is reflected in continuous improvement in turnover.

About the TFC Issue: The company is planning to issue a secured TFC of PKR 2,000mln with a green-shoe option of PKR 400mln in the current year. The TFC issue is of a seven-year tenure, and will carry a profit rate of 6 months KIBOR+240 basis points, with no cap or floor. Principal redemption will be in ten unequal semi-annual installments starting from the thirtieth month from date of disbursement after an initial grace period of two years . The TFC contains a 25% conversion option. This allows TFC holders the right of conversion of up to 25% of the value of their TFCs into ordinary shares at a 30% discount to the preceding three months average share price of ordinary shares, at any time between Jan-2008 to Mar-2008. The TFC is secured by way of first charge on the present and future fixed assets of the company with a 25% margin.

About the company: Azgard Nine Limited (previously Legler Nafees Denim Mills Limited) is a vertically integrated unit, comprising of spinning, weaving, stitching, dyeing and finishing. The company is listed on the Karachi stock Exchange. It is currently one of the top quality manufacturers and exporters of denim fabrics and garments. The highly professional management of the company is embarked upon a vision of fully leveraging the company's strategic assets - physical and human - to become a truly global player. A comprehensive strategy is, therefore, in place to emulate best international practices in corporate governance, production efficiencies and environmental standards.
 
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings.

PACRA's opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.

 

    
rush limbaugh