Sharechat Logo

Pyne Gould proposing $14m participation in Epic loan

Friday 1st July 2011

Text too small?

Pyne Gould Corporation is proposing to acquire a $14 million participation in National Australia Bank's (NAB) first ranking loan facilities to infrastructure investor Equity Partners Infrastructure Co No1 Limited (Epic).

Pyne Gould, which owns Epic's manager, said it was proposed that its participation would be made in place of Epic's obligation to make principal repayments on the facility from NAB.

If the arrangements were not concluded, or a needed NZX listing rule waiver not obtained, or another acceptable arrangement concluded, that may result in Epic being in breach of the NAB facility, Pyne Gould said today.

"If agreed, the participation will allow Epic to proceed with an orderly and early realisation of assets with proceeds net of any costs applied to full repayment of the NAB facility."

Pyne Gould chairman Bryan Mogridge said his company's proposed support would help Epic as it moved to reduce debt and complete a restructuring.

The proposed participation is to be in two tranches, with the first of $7.5m to be made once the terms of the participation are agreed and the participation agreement formally documented.

The second tranche of $6.5m, to be made by July 15, is subject to Pyne Gould obtaining the NZX waiver, which is needed as Epic and Torchlight, an investor in Epic, are related parties of Pyne Gould.

It was anticipated the participation would be agreed with NAB within the next seven days, Pyne Gould said.

The participation would result in Pyne Gould holding a share in NAB's first ranking facility, whereby interest received was paid out to both NAB and Pyne Gould on a pro rata basis.

That was subject to the principal amount of Pyne Gould's participation being subordinated behind NAB's share and Pyne Gould's interest component being subordinated on an event of default occurring.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report