Date of Report: September 30, 2024
Broker Name: CGS International Securities

Divestment of 400 Capitol for US$117 Million
MUST has announced the divestment of its property, 400 Capitol, for a total value of US$117 million. The transaction is expected to be completed in the fourth quarter of 2024. This sale represents a strategic move by MUST to streamline its portfolio and focus on improving its financial structure.

Use of Proceeds to Repay Debt
The net proceeds from the sale of 400 Capitol, along with existing cash reserves, will be utilized to repay US$130.7 million in loans that are due in 2025. This approach underscores MUST’s focus on reducing its debt burden and improving its financial position. The repayment of loans will also contribute to strengthening the company’s balance sheet ahead of upcoming financial obligations.

Improvement in Aggregate Leverage
Post-divestment, MUST’s proforma aggregate leverage is expected to improve to 54.2%, according to management. This improvement is a significant outcome of the sale and debt repayment plan, positioning MUST for better financial health and enhanced operational flexibility in the future.

This detailed overview, based on the September 30, 2024, report, outlines MUST’s divestment of 400 Capitol and its strategic focus on debt reduction and financial leverage improvement.