Myer creates breathing space by refinancing $600m debt
Myer chief executive Richard Umbers has created some breathing space to implement his new strategy by refinancing $600 million of debt, $75 million of which was due to be repaid in two months.
Myer said on Wednesday it had successfully refinanced a syndicated facility totaling $600 million and comprising three tranches of two and four year terms.
The first tranche of $180 million is now due to be repaid in August 2017, the second tranche of $145 million in August 2019 and the third tranche of $275 million also in August 2019.
Under the previous $625 million facility, Myer was due to repay $75 million this August, $275 million in August 2016 and $275 million in August 2017.
Key features of the new facility include more favourable pricing, longer maturity and improved terms.
“The successful outcome of refinancing discussions with our banking syndicate delivers a number of benefits to Myer and we are encouraged by the level of support we have received,” said Mr Umbers.
“The decision to refinance our outstanding facilities at this time represents an opportunity to secure more favourable pricing on improved terms over an extended period,” he said.
The interest margin on the loans has been reduced and Myer’s fixed charges cover ratio covenant has been lowered from 1.65 times to 1.50 times across all facilities. Remaining covenants are unchanged.
The refinancing gives Myer breathing space and may enable the embattled department store chain to postpone or avoid a capital raising.
Mr Umbers, who took the helm from Bernie Brookes in March, is due to release details of his strategic review later this year.
Source:- http://www.smh.com.au
Interested in joining our team? Why not apply today?
About Our Traineeships:-
Join the Market Leader in 2016 – Accounting Traineeships
Looking to study a B.Com at University of Newcastle in 2016?
Bottrell Business Consultants are a Multi Award Winning Firm
We have 2016 Traineeships available – work 3 days Study part-time 2 days
Apply now to Tara Skippen on tara@bottrellaccounting.com.au – send resume & cover letter
www.bottrellaccounting.com.au or check us out on Facebook, Twitter, Instagram or LinkedIn
Offices – East Maitland | Newcastle | Sydney | Melbourne | Brisbane | Gold Coast
Bottrell Business Consultants Pty Ltd – Chartered Accountants and Business Advisors.
The Bottrell group incorporates Bottrell Business Consultants, Bottrell Accounting & Taxation, Maitland Accounting & Taxation, East Maitland Accounting Services and Mobile Bookkeeping & Recruitment.
Our group of businesses & links include the following companies (& our websites);-
- Bottrell Accounting & Taxation – Visit out website
- Bottrel Business Consultants Pty Ltd – Visit our website
- Maitland Accounting & Taxation – Visit our website
- East Maitland Accounting Services – Visit our website
- Mobile Bookkeeping & Recruitment – Visit our website
Comments are closed.