enX GROUP LIMITED - Debt Capital Market Activity, New Note Specific Liquidity Facility And Notification In Terms Of S45(5) Companies Act

Debt Capital Market Activity, New Note Specific Liquidity Facility And Notification In Terms Of S45(5) Companies Act

ENX GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2001/029771/06)
JSE share code: ENX ISIN: ZAE000222253
(“enX” or “the Company”)


DEBT CAPITAL MARKET ACTIVITY, NEW NOTE SPECIFIC LIQUIDITY
FACILITY AND NOTIFICATION IN TERMS OF SECTION 45(5) OF THE
COMPANIES ACT 71 OF 2008


Debt Capital Market Activity

enX Corporation Limited (“enX Corporation”), a wholly-owned
subsidiary of the Company and borrower of the debt raised to
finance enX’s South African leasing businesses, has raised
R260 million in the debt capital markets, through an auction
conducted on 17 April 2018. The funding raised will comprise
R102 million 3 year 50% guaranteed notes (ENX01S) and R158
million 3 year unsecured notes (ENX01). The notes will be
issued on Monday, 23 April 2018, at which time additional
terms of the notes will be announced on SENS.

The proceeds received from the R200 million term loan raised
in late 2017, as announced on SENS on 7 December 2017, and a
portion of the R200 million loan repayments received to date
from MCC Contracts Proprietary Limited, together with the
R260 million notes raised, have been and will be utilised to
redeem R265,5 million of notes that matured in early April
2018 (as announced on SENS on 28 March 2018 and 4 April 2018)
and R300 million of notes maturing on 25 April 2018.
Accordingly, overall debt levels are expected to decline.

Note Specific Liquidity Facility

enX Corporation has entered into a new Note Specific
Liquidity Facility (“NSLF”) of R315.5 million with all the
banks currently participating in its banking credit
facilities. The NSLF replaces enX Corporation’s existing R300
million liquidity facility which terminates on 30 April 2018.
The NSLF, which is available for a 42 month period, is to be
used exclusively to fund any principal amounts payable in
respect of the repayment of any notes issued under enX
Corporation’s DMTN programme on their respective due dates.

Section 45(5) Notice

Notice is hereby given that, in terms of the provisions of
section 45(5) of the Companies Act 71 of 2008 (the “Companies
Act”), and pursuant to the special resolution passed at the
annual general meeting of the Company held on Tuesday, 13
February 2018, the board of directors of the Company (the
“board”) has adopted a resolution to provide financial
assistance to enX Corporation by the issuance of a guarantee
by the Company in respect of the R315.5 million liquidity
facility, which constitutes direct and/or indirect financial
assistance in terms of the provisions of section 45(5) of the
Companies Act.

In accordance with section 45(3)(b) of the Companies Act, the
board of directors of the Company is satisfied and
acknowledges, in respect of the financial assistance granted
that:

•   the Company will satisfy the solvency and liquidity
    test as set out in section 4 of the Companies Act
    immediately after providing the financial assistance;
    and
•   the terms under which the financial assistance is to be
    given are fair and reasonable to enX.


Johannesburg
19 April 2018

Sponsor
The Standard Bank of South Africa Limited

Date: 19/04/2018 09:27:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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