23 Jun 2008
Energy Developments Limited advises that documentation for a new five year non-recourse Australian Syndicated Debt Facility (new Debt Facility) was executed on 20 June 2008. The new Debt Facility refinances the existing $192 million non recourse facility which was due to expire in December 2008.
Financial close for the new Debt Facility is targeted to occur on 30 June 2008.
The new Debt Facility covers Energy Developments’ existing Australian operating asset base with the exception of the West Kimberley Power Project which has a separate 10 year $144 million non recourse debt facility and the Company’s new 45MW Moranbah North Coal Mine Methane Project which has a separate $43 million non recourse facility.
The new Debt Facility is being provided by Energy Developments’ existing lenders comprising ANZ, National Australia Bank, Suncorp Metway and Commonwealth Bank.
Managing Director, Greg Pritchard said he was very pleased with the new facility which had been obtained in what were likely to remain quite volatile times for global finance markets.
“The refinance underlines the low risk, diversified nature of the Company’s Australian operating asset base and our blue chip customers such as BHP Billiton, Xstrata and Anglo Coal,” Mr. Pritchard said.
“The new debt structure with a large revolving debt component will provide the Company with considerable flexibility to prudently pursue growth in the Company’s core businesses and capital management opportunities.”
Key features of the five year new Debt Facility include:
• Non-recourse debt, up to $300 million;
• First tranche - $192 million to refinance the existing Australian Syndicated Facility on 30 June 2008;
• Second tranche - $108 million revolving facility for general corporate purposes, including the refinancing of the existing $43 million Moranbah North Debt Facility upon completion of the Project due in late 2008; and
• Terms and conditions consistent with the existing debt facility, in place since 2003.
The increase in underlying base interest rates combined with the new facility margins is expected to increase the cost of funds for the $192 million existing facility by approximately 1% per annum, subject to market conditions on the date of financial close of 30 June 2008.
The new Debt Facility also includes provisions for a pre-agreed facility limit re-assessment process following the likely introduction of an Emissions Trading Scheme by the Federal Government at some point during the five year facility term.
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