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- Release Date: 07/02/12 10:30
- Summary: GENERAL: DOW: Reliance Rail financial restructuring
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DOW
07/02/2012 08:30
GENERAL
REL: 0830 HRS Downer EDI Limited
GENERAL: DOW: Reliance Rail financial restructuring
Media/ASX and NZX Release
6 February 2012
RELIANCE RAIL FINANCIAL RESTRUCTURING
Downer EDI Limited (Downer) announced today that the New South Wales
Government had reached an agreement with Reliance Rail, Downer, other
Reliance Rail shareholders, financial guarantors and other parties to
restructure the financing of Reliance Rail.
This follows the announcements made earlier today by Reliance Rail and the
NSW Treasurer, Mike Baird, that the NSW Government had agreed to invest $175
million in 2018 in Reliance Rail in return for 100 per cent of Reliance Rail
equity.
Downer's contribution to the restructure is limited to 100% of its existing
equity in Reliance Rail and a contingent commitment to pay Reliance Rail
$12.5 million in 2018 should it be required, following the NSW Government's
investment, to refinance Reliance Rail senior debt. Reliance Rail must use
its best endeavours to refinance the senior debt in 2018 without recourse to
Downer's contingent commitment.
The Chief Executive Officer of Downer, Grant Fenn, said the agreement was a
very positive step forward for the funding of the Waratah train project.
"This agreement will provide Downer and its joint venture partner Hitachi
with greater certainty going forward as we manufacture and maintain the
Waratah trains," Mr Fenn said. "The NSW Government has shown its support for
this important project and the questions around Reliance Rail funding should
now subside. The six trains in service are performing well and we expect the
seventh train will commence passenger services shortly."
Mr Fenn said Downer would provide a full update on the Waratah train project
when it reports its Half Year Results on 21 February.
For further information please contact:
Michael Sharp, Group Head of Corporate Affairs and Investor Relations +61
439 470145
Luke Thrum, Manager Investor Relations +61 459 828720
Downer EDI Limited (www.downergroup.com) provides comprehensive engineering
and infrastructure management services to the public and private Minerals &
Metals, Oil & Gas, Power, Transport Infrastructure, Communications, Water and
Property sectors across Australia, New Zealand, the Asia Pacific region and
the United Kingdom.
End CA:00219213 For:DOW Type:GENERAL Time:2012-02-07 08:30:40
(20min delay)