Debt-laden Centro Properties Group says it has completed a long-term refinancing agreement with lenders.
The agreement includes a three year extension on the $3.9 billion senior syndicated debt facility, Centro said in a statement to the Australian stock exchange.
A trading halt on securities in Centro and its 51 per cent owned retail property trust Centro Retail Group has also been lifted.
Centro shares surged up 4.5 cents or 37.5 per cent to 16.5 cents by 1007 AEDT on Friday after it said the agreement included a new $35 million working capital facility and $1.05 billion hybrid security to improve cash flow servicing and balance sheet strength.
The deal also includes the issuance of new stapled securities to Centro's lenders.
At 1018 AEDT on Friday, securities in Centro had retreated to trade up two cents, or 17 per cent, at 14 cents in heavy trade.
Securities in Centro's retail property investment unit, Centro Retail Trust, fell half a cent to 10.5 cents.
"The three year debt stabilisation agreement achieves our objective of securing the long term viability of the group, and will have the effect of maximising cash flow through the re-structuring of our debt arrangements and minimising asset sale requirements," chief executive Glenn Rufrano said in a statement. Centro wins three-year extension on debt facility AAP www.businessspectator.com.au
"This debt stabilisation provides sufficient time and liquidity to navigate difficult market conditions and maintain focus on our shopping centres and the operation of the funds management business."
As part of the agreement, Centro will issue 125 million new stapled securities to its lenders, which is equivalent to 14.8 per cent of the outstanding securities.
The new securities were issued at 11.27 cents each.
Centro said the new securities, combined with the hybrid securities, would mean that its lenders would hold 90.1 per cent of the company's ordinary securities, following a conversion to equity of the hybrid securities.
so, at 11.27 cents is that for CER or CNP?????
CER Price at posting:
9.6¢ Sentiment: Buy Disclosure: Held
