2 January 2015
Emeco is pleased to announce that it has successfully completed the refinancing of its A$50 million syndicated debt facility with a new A$75 million asset backed loan (ABL). Emeco's new facility matures in December 2017 and will be available for general corporate purposes.
Operating as a borrowing base facility, the ABL provides Emeco with considerably more flexible terms and conditions than those under the previous syndicated debt facility. The ABL has no maintenance covenants unless the facility is more than 50% drawn, at which stage it requires Emeco to have an income cover ratio of 1.25 times and gearing of less than 65%.
Emeco Chief Financial Officer, Greg Hawkins, said the ABL was better suited to work in conjunction with the Company's existing US$335 million 144A bond issue.
"With a cash balance of approximately A$30 million, in addition to this A$75 million ABL, the business continues to maintain a prudent level of liquidity and will continue to focus on strengthening the balance sheet," Mr Hawkins said.