28 December 2016 Market Update:
Slater and Gordon Limited (ASX:SGH) yesterday reached agreement with its Lenders to make further amendments to its bank finance facilities.
As previously disclosed the maturity date for the Group’s facilities is May 2018, and there are a number of financial covenants and operational milestones that apply through the term of the facilities. The maturity of the Group’s facilities remains unchanged.
The Company is working pro-actively and co-operatively with its Lenders to explore and manage options for the refinancing and recapitalisation of the Group
. The process has commenced well ahead of the May 2018 deadline, with the objective of achieving an appropriate and successful outcome for stakeholders and a smooth (process leading to that outcome. (So we can have an ANN before May 2018 re the recap or refinancing)
The Company anticipates that as the process unfolds there will be media speculation concerning its bank facility arrangements
. The Company does not intend to provide a running commentary on the process it is undertaking with the co-operation and support of its Lenders and will make such appropriate further announcements as required in the ordinary course.
SGH Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held