TRINITY Limited has reached a conditional agreement with LaSalle Funds Management Limited in relation to the mezzanine debt facility for TOP Fund No. 1.
TOP has provided a mezzanine debt facility to San Remo Project Pty Ltd (San Remo Project), a wholly owned subsidiary of Trinity Limited.
The facility is currently fully drawn at $19.06 million and is due for expiry on 30 April 2012. The facility is secured solely by a second mortgage over the real property of San Remo Project and a second ranking fixed and floating charge over the assets of San Remo Project.
Under the terms of the conditional agreement, Trinity’s investment in TOP (held by Trinity Stapled Trust and valued at $0.54 million as at 31 December 2011) will be cancelled in full and final settlement of the mezzanine debt owed by San Remo Project to TOP.
As a result, Trinity’s net tangible assets will increase by $18.5 million or 9.6 cents.
CEO Craig Bellamy said that the conditional agreement reached represents a significant result for securityholders and upon satisfaction of the conditions precedent, would see the pro-forma NTA per security as at 31 December 2011 increase to 38.9 cents per security compared with the actual NTA per security as at 31 December 2011 of 29.3 cents per security, an increase of 32.8%.
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