Liquid dodges debt crunch – at a hefty price

Liquid Intelligent Technologies has completed a US$660-million refinancing package, eliminating near-term default risk from a $620-million bond that was due to mature in September 2026. The new debt structure includes a $300-million senior secured bond at a 10.75% coupon — nearly double the previous 5.5% rate — plus syndicated term loans in USD and rand, and a $195-million equity injection from parent Cassava Technologies. The deal follows a series of credit-rating downgrades by Moody's and Fitch through 2024–2025. While the refinancing stabilises Liquid's balance sheet and has prompted rating agency upgrades, the significantly higher cost of capital means the pan-African fibre operator must now generate substantially more cash to service its debt.