LOOKING to fund its new acquisition and underpin further growth, Cedar Woods is upping and extending its corporate finance facility from $205 million to $300 million.
Cedar Woods will use the increased facility to support the group’s building operations and plans for further growth.
This will include the $49.5 million acquisition of the 86-hectare hectare Eglinton site in WA, made in December 2021 and announced on 7 November.
“The support of our financiers is a strong endorsement of management and our business model. Additionally, it serves as an advantage in acquiring future development sites and supporting our growth ambitions,” said Nathan Blackburne, managing director of Cedar Woods.
After the acquisition Cedar Woods have more than $90 million available funding capacity, following the $95 million increase of corporate finance facility limit.
The club facility is provided by ANZ, Bankwest and NAB and includes three year and five year debt terms.
The new terms include an extra year for the three-year tranche, which is now at 85% of the limit at $240 million, to January 2025.
Additionally, the terms cover an extension of the 5-year tranche for another year, to January 2027, with the financing now at $60 million of 20% of the total limit.
The facility, which is reviewed annually, could also be extended by a further year in January of each year of the term from 2023. This would be for both the three-year and five-year terms and would be subject to the approval of the debt lenders.
