TPI 0.00% 77.0¢ transpacific industries group ltd

Ann: GENERAL: TPI: Transpacific Refinancing

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    					TPI
    01/07/2014 16:53
    GENERAL
    
    REL: 1653 HRS Transpacific Industries Group Ltd
    
    GENERAL: TPI: Transpacific Refinancing
    
    01 July 2014
    
    TRANSPACIFIC FINALISES DEBT REFINANCING
    Transpacific Industries Group Ltd. (ASX:TPI) today announced that, following
    the successful sale of its New Zealand business, the Company has finalised
    its refinancing with a new $400 million syndicated debt facility.  The new
    debt facility has been provided by 8 banks (previously 15).
    The refinancing was significantly over-subscribed by both domestic and
    offshore lenders.
    As part of this refinancing, the Company has:
    1. Improved the pricing of the facility reflecting TPI's enhanced credit
    profile;
    2. Increased the forecast weighted average debt maturity at 30 June 2014 from
    1.9 years to 4.3 years; and
    3. Reduced the overall size of TPI's syndicated debt facility from $1.199
    billion  to $400 million.
    Sale of the New Zealand business and completion of the refinancing will allow
    TPI the opportunity to redeem the Step-up Preference Securities (ASX:TPAPA)
    as at 30 September 2014 with payment due in October 2014.  The Company will
    also consider the resumption of dividends in the near term.
    Commenting on the refinancing, Stewart Cummins, Chief Financial Officer of
    TPI said: "We are pleased with the strong support shown by members of our
    bank syndicate and the confidence they have in the future direction and
    strategy of the Company.  With the reduction in debt level and improved
    pricing, we anticipate that our FY15 cash interest costs will be $15-18
    million."
    A one-off pre-tax charge of approximately $18 million will be recognised in
    the FY14 accounts relating to the unamortised syndicate establishment costs
    incurred in October 2011.
    
    END
    
    Investor and Media Relations:
    Frank Sufferini
    Group Investor Relations Manager
    Telephone: 0416 241 501
    End CA:00252313 For:TPI    Type:GENERAL    Time:2014-07-01 16:53:19
    				
 
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