Riyadh - Mubasher: Saudi Cable Company on Wednesday reported signing a debt reduction agreement with a lender for a loan amounting to SAR 141.9 million.
This agreement will lead to an immediate payment of SAR 51 million, including a SAR 11 million refundable guarantee against an outstanding loan and an issued letter of guarantee, according to a filing to the Saudi Stock Exchange (Tadawul).
Through this, the lender will immediately release SAR 77 million from the outstanding loan, as well as waive the remaining balance of SAR 24.9 million when the company provides additional cash guarantees. This is expected to be completed before June 2019, the statement showed.
The Saudi Company expects to realise the impact of the SAR 77 million debt reduction in the second quarter of 2017, and the effect of the remaining SAR 24.9 million in Q1-18.