Ann: GENERAL: CNU: Chorus amends committed bank facilities and dividend update

• Release Date: 25/07/14 08:30
• Summary: GENERAL: CNU: Chorus amends committed bank facilities and dividend update
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					CNU
25/07/2014 08:30
GENERAL

REL: 0830 HRS Chorus Limited (NS)

GENERAL: CNU: Chorus amends committed bank facilities and dividend update

STOCK EXCHANGE ANNOUNCEMENT

25 July 2014

Chorus amends committed bank facilities and dividend update

Chorus has today agreed amendments to its committed bank facilities,
providing significant additional financial flexibility and funding certainty.

Chorus CFO Andrew Carroll said Chorus appreciated the banks' ongoing support
as Chorus reshapes its business - operationally and financially - following
the Commerce Commission's initial pricing principle decision of November
2013.

Under the agreements, the banks have agreed to:

- increase Chorus' covenant levels from 3.75 to 4.25 times net debt to EBITDA
at pricing levels consistent with the Commerce Commission's initial pricing
principle decisions, with covenant levels stepping down to 3.75 times net
debt to EBITDA if the Commerce Commission's final pricing principle prices
are consistent with current regulated pricing;
- extend the maturity of Chorus' November 2015 facility to 31 July 2016; and
- waive rights potentially available to the banks associated with the
material reduction in regulated pricing to take effect on 1 December 2014.

As part of its capital management update in February 2014, Chorus indicated
that a future dividend policy would be communicated when financially
sustainable and there was sufficient certainty of outcomes from the Chorus
initiatives, Crown Fibre Holdings discussions and regulatory reviews. As part
of these amendments, Chorus has agreed that no dividends will be paid until
the later of the conclusion of the Commerce Commission's final pricing
principle review processes or 30 June 2015.

Chorus has also agreed to limit total drawings across all committed bank
facilities to $1.2 billion until outcomes from the Commission's final pricing
principle processes are known and also reduce its July 2016 facility by $100m
to $575m, which is expected to provide Chorus with sufficient operating
liquidity. Chorus will pay amendment fees consistent with normal market
practice but there is no change in borrowing margins or other fees. "The
changes we have agreed with the banks reflect Chorus' focus on achieving
financial stability, particularly with the Commerce Commission's pricing
review processes now scheduled to continue through to April next year.

"We also have an extensive range of operating cost, capital expenditure and
revenue initiatives in train to help address this ongoing period of pricing
uncertainty," he said. "In addition, we have also agreed two sets of
initiatives with Crown Fibre Holdings that assist us to deliver the UFB
programme."

Chorus' committed bank facilities now comprise tranches of $575 million
maturing in July 2016 and $675 million maturing in November 2017, supported
by 10 banks. A $250 million tranche maturing in May 2019 is supported by a
subset of four banks.

Chorus' debt of $1.8 billion at 31 December comprised $1,140 million in bank
debt and $677 million in European Medium Term Notes.

ENDS

For further information:

Ian Bonnar
Corporate Affairs Manager
Mobile: +64 (27) 215 7564
Email: [email protected]

Brett Jackson
Investor Relations Manager
Mobile: +64 (27) 488 7808
Email: [email protected]
End CA:00253062 For:CNU    Type:GENERAL    Time:2014-07-25 08:30:04