AVEO Group has terminated the remaining $150 million of interest rate swaps.
As a result, the group’s weighted average cost of debt has fallen from 5.8% per annum at 31 December 2014 to currently 4.0% per annum.
This reduces the group’s annual cash interest expense by over $7.5 million.
The group expects its weighted average cost of debt to reduce below 4.0% by 30 September 2015, following the practical completion of The Milton project and repayment of the $108.5 million project finance facility, which is expected to occur in the first quarter of FY16.
Australian Property Journal
