Liquid Intelligent Technologies has completed a $855 million recapitalisation and debt refinancing, backed by a $195 million equity injection from its parent company, Cassava Technologies.
The financial restructuring enables the company to deleverage and position for growth, says Hardy Pemhiwa, president and CEO of Cassava.
The transaction includes a $300 million Senior Secured Eurobond listed on Euronext Dublin and the full repayment of a $620 million bond ahead of its September 2026 maturity.
In a note posted on LinkedIn, Pemhiwa says: “The new bond was oversubscribed 2.5x, signalling that international institutional investors believe in the fundamentals of African digital infrastructure and in Liquid even during this period of geopolitical uncertainty and global capital markets volatility.”
Further, a $210 million syndicated term loan provided by Rand Merchant Bank, Standard Bank Group, Nedbank Corporate and Investment Banking and the International Finance Corporation forms part of the deal, alongside a $150 million syndicated term loan from Ninety One and Mauritius Commercial Bank Group.
“Together with the Cassava equity injection, these facilities retire our prior debt obligations, extend Liquid's debt maturity profile and provides a natural rand currency hedge on our SA revenues,” Pemhiwa explains.
He went on to say Fitch Ratings upgraded Liquid ahead of the launch, while Moody's Ratings placed the company on review for upgrade. Anchor orders in the Eurobond were placed by development finance institutions, including DEG- the German Investment and Development Corporation.
J.P. Morgan, RMB and Standard Bank Group acted as joint global coordinators and joint bookrunners.
Pemhiwa concludes: “Liquid's stronger balance sheet is not an end in itself. It is the foundation for what comes next, our continued investment in fibre, cloud, cybersecurity and AI-enabled infrastructure across the continent, delivered through Cassava Technologies' integrated OneCassava model.”
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