Centro granted financial lifeline June 02, 2008 10:33am Article from: AAP
TROUBLED property group Centro Properties Group (Centro) has been granted an extension of its $2.77 billion financing arrangements from its lenders to December 15.
Centro (cnp.ASX:Quote,News) said obligations of $2.3 billion owed to its Australian lending group and $US450 million ($472 million) owed to US private placement noteholders have been extended to December 15, from the last deadline of Friday, May 30.
Centro said additional liquidity facilities had been provided by its financiers, along with the debt extension.
The US lending group, which includes financial houses JPMorgan and Bank of America, has reconfirmed the extension of the US joint venture facilities to 30 September 2008 as a result of finalisation of the additional liquid facilities and confirmed extension.
On May 8, Centro was thrown another lifeline by its lenders with $2.77 billion in debt extended to December 15.
Centro Properties stapled securities rose 1.5 cents to 39.5 cents by 10.18am AEST. Centro Retail stapled securities were up two cents to 43.5 cents.
Rolling in debt
Centro Properties and Centro Retail Trust have two other obligations of $US1.1 billion each relating to a US joint venture, which had their deadline also be pushed back to the December 15. The reprieve is also tied to a number of conditions being met by Friday this past week.
"Centro now has an aggregate of approximately $A155 million in liquidity facilities and other financier support,'' Centro said in a statement to the stock exchange.
"These facilities will primarily be used to fund capital expenditure, adviser fees and higher lender costs incurred as a consequence of the extension arrangements.
"Ongoing fees and margins of 3.75 per cent per annum are payable on the liquidity facilities.
"Otherwise, interest margins payable by Centro during the extension period remain as previously announced.''
Centro said the financing extension also remains subject to its Australian financiers, US private placement noteholders and the US lending group reaching a further agreement by September 30 on the terms on which assets can be sold, and the proceeds of such sales applied after that date.
Ends.
Cheers, Pie :)
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