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DUBAI - Arada Developments LLC announced on Thursday a tender offer to purchase up to $100 million of its outstanding $500 million Trust Certificates due 2027 for cash, as part of its debt management strategy.
The Dubai-based developer is offering to buy back the certificates at a purchase price of 102.75% of face value, according to a press release statement. The tender offer began on Thursday and will expire on July 31, 2025, at 16:00 London time.
The company stated the purpose of the offer is "to optimise Arada’s cost of funding and its balance sheet whilst providing liquidity to investors." The offer is conditional upon the successful pricing and settlement of new U.S. dollar denominated trust certificates to be issued under Arada Sukuk 2 Limited’s $1 billion Trust Certificate Issuance Programme.
If the aggregate face amount of certificates tendered exceeds the maximum acceptance amount, Arada intends to accept tenders on a pro-rata basis. The company reserves the right to accept more or less than the stated $100 million maximum.
Arada will also pay due and unpaid periodic distribution amounts on all certificates validly tendered and accepted for purchase, covering the period from the most recent distribution payment date to the settlement date, which is expected to be August 5, 2025.
Certificateholders who tender their existing certificates may receive priority allocation in the new certificates issuance, though this is at Arada’s discretion and not guaranteed.
Emirates NBD Bank PJSC and Standard Chartered (LON:STAN) Bank are serving as dealer managers for the transaction, with Sodali & Co Ltd acting as the tender and information agent.
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