Allco refuelled
After months of anxiety, Allco announces details of a new debt facility designed to boost investor confidence.
Allco Finance Group has reached agreement with its syndicate of 12 banks on a new debt facility in what is being pitched as the most significant development since its plunging share price triggered a debt review earlier this year.
After six months of negotiations, led by CEO David Clarke, advisors Caliburn Partnership and restructuring experts KordaMentha, the banks have agreed to a new facility that runs till September 2009 and does not include any market triggers.
Allco says the new facility will give it stability, take the company out of the market spotlight, boost confidence among clients and give it time to rebuild its business.
The banking syndicate – which is believed to include Westpac, CBA and ABN Amro – will receive a hefty margin of 3.5 per cent above the borrowing reference rate, but this will fall to 3 per cent once the debt is reduced below $600 million and to 2.75 per cent below $400 million.
Allco has agreed to reduce its debt from its current levels of $691 million to below $400 million by next September. Sales of assets outside the core airline, shipping and rail businesses will continue, with the recently announced sale of its wind farm portfolio to be concluded early next month.
Caliburn has had a five person team headed by Simon Mordant and Jamie Garis working on the Allco restructure for the past six months, the KordaMentha team has been led by Martin Madden and Michael Brereton, while David Clarke has been leading negotiations for Allco with the help of Tom Lennox, Suzannah Hogan and Michael Stefanovski.
After six months of negotiations, led by CEO David Clarke, advisors Caliburn Partnership and restructuring experts KordaMentha, the banks have agreed to a new facility that runs till September 2009 and does not include any market triggers.
Allco says the new facility will give it stability, take the company out of the market spotlight, boost confidence among clients and give it time to rebuild its business.
The banking syndicate – which is believed to include Westpac, CBA and ABN Amro – will receive a hefty margin of 3.5 per cent above the borrowing reference rate, but this will fall to 3 per cent once the debt is reduced below $600 million and to 2.75 per cent below $400 million.
Allco has agreed to reduce its debt from its current levels of $691 million to below $400 million by next September. Sales of assets outside the core airline, shipping and rail businesses will continue, with the recently announced sale of its wind farm portfolio to be concluded early next month.
Caliburn has had a five person team headed by Simon Mordant and Jamie Garis working on the Allco restructure for the past six months, the KordaMentha team has been led by Martin Madden and Michael Brereton, while David Clarke has been leading negotiations for Allco with the help of Tom Lennox, Suzannah Hogan and Michael Stefanovski.
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