Further Capital Management Initiatives Including Tamar SaleASX...

Further Capital Management Initiatives Including Tamar Sale
ASX Release
18 August 2008
BBP ANNOUNCES FURTHER CAPITAL MANAGEMENT INITIATIVES INCLUDING THE SALE OF TAMAR
•
BBP has agreed to sell Tamar to the State of Tasmania resulting in a further pay down of debt facilities and the removal of future project commitments.
•
FY08 EBITDA guidance reconfirmed and $410 million impairment recognised in relation to Alinta assets.
•
Bank approvals obtained for approximately $120 million BBPH facility extension to 31 March 2009 with future distributions subject to repayment or refinancing.
•
UBS appointed as BBP’s adviser to undertake a full strategic review including distribution policy.
Len Gill, BBP Chairman said “The successful sale of Tamar follows the successful sales of Uranquinty and Ecogen. Over the last six weeks, BBP has reduced net debt by over $770 million through asset sales, strengthening the balance sheet.”
”The sale of Tamar represents a significant de-risking for the BBP business. Coupled with extension of the BBPH facility, BBP has achieved a key step towards stabilisation of BBP debt and balance sheet improvement. Going forward, the appointment of UBS to undertake a strategic review of BBP will enable consideration of all further options to maximise value for securityholders.”
Tamar
Babcock & Brown Power (ASX:BBP) has signed a binding Heads of Agreement for the sale of the Tamar Valley Power Station project (“Tamar”) to the State of Tasmania for $100 million cash proceeds. BBP expects to realise a loss in FY08 of approximately $42 million in relation to this sale as detailed below.


to see the rest follow link

http://imagesignal.comsec.com.au/asxdata/20080818/pdf/00870178.pdf