Karachi, September 20, 2024 — TRG Pakistan Limited announced a significant restructuring of Afiniti Limited, a portfolio company of The Resource Group International Limited (TRGI), on Friday.
The announcement, shared with the Pakistan Stock Exchange (PSX), marks a pivotal moment for both TRG and Afiniti, positioning the company for enhanced financial stability and future growth in the dynamic artificial intelligence (AI) technology industry.
TRG Pakistan, as a shareholder in TRGI, shared that Afiniti Limited has reached an agreement with its senior lenders to implement a comprehensive balance sheet restructuring plan. This strategic move will drastically improve Afiniti’s financial outlook and strengthen its foothold in the competitive AI landscape.
The key highlights of the restructuring plan include:
• Debt Reduction and Extension: Afiniti’s current senior debt will be significantly reduced, with a multi-year extension granted on its debt maturity, easing financial pressure on the company.
• Balance Sheet Recapitalization: Afiniti’s balance sheet will undergo a recapitalization process, involving senior lenders, existing preferred shareholders (including TRGI), and Afiniti’s management. This collective group will retain substantial equity interests in the company, ensuring a balanced approach to maintaining ownership while driving growth.
• Reduced Cash Interest Payments: The restructuring will also lower Afiniti’s cash interest payments, freeing up resources to fuel the company’s expansion. Together with additional financing, this will provide Afiniti with the necessary capital to accelerate its development and innovations in AI technology.
For TRG Pakistan, this restructuring holds significant value. TRG’s indirect economic stake in Afiniti will be largely retained in percentage terms, on a fully diluted basis, preserving the upside potential for shareholders.
The restructuring plan, once completed, is expected to unlock growth opportunities for Afiniti, which is known for its cutting-edge AI-driven solutions in customer experience and enterprise efficiency. Afiniti’s technological advancements, backed by the improved financial structure, will enable it to compete more aggressively in global markets and explore new ventures.
The final steps for the restructuring include obtaining court approvals in Bermuda and the United States, with the process expected to conclude by the end of the year. Further details about the transaction will be shared closer to the closing date.
This landmark move reinforces TRG Pakistan’s commitment to its portfolio companies and ensures that Afiniti remains a leading player in the AI technology sector, ready to capitalize on future growth and opportunities.
