BABCOCK & Brown has repaid $250 million of short term margin loans secured against its managed funds.
Chief executive Phil Green said the loans were repaid with existing resources and the investment bank has received commitments for new term finance.
“The new term financing facility contains no market price based covenants, no margin call obligations and no obligations to post additional collateral based on the prevailing market price of securities in our managed funds,” he added.
Green said as a result of the bank using its existing resources to retire debt, he expects an increase in Babcock & Brown’s corporate banking facilities.
However, Green said overall gearing will reduce as a consequence of increased retained earnings and the $250 million repayment of short term ‘margin’ facilities.
“We reconfirm our 2008 Group Net Profit guidance of $750 million which represents in excess of 15% growth on the 2007 result.
“We are well advanced with our revenue generating activities and our normal asset recycling program and reconfirm that we are on track to generate cash and available reserves of approximately $1.5 billion by the middle of 2008. We believe this will place us in a strong position to take advantage of opportunities that may arise in the current market environment,” he concluded.
Australian Property Journal
