This article is from the Australian Property Journal archive
FKP Property Group was embraced by investors yesterday after the group revealed it has managed to negotiate an extension to its debt maturity.
FKP share price traded 20 cents or 7.02% higher yesterday to close at $3.05 – but that remains below the 52-week high of $7.59.
In addition, chief financial officer Darryl Guihot said the group has completed its program of restructuring with the completion of a $375 million syndicated bank debt facility secured over its 40 wholly-owned retirement villages.
The $375 million facility replaces two individual loans totalling $300 million that had been partly due in March and partly in August 2008. The new facility is in place for three years, and has been provided by three of the local trading banks.
The group has also extended $490 million of development and balance sheet facilities.
And Guihot said only $14 million of bank debt approximately 1% of the total is now due for repayment before the 2009/2010 financial year.
As a result, in the first half of FY2010, the trust will have approximately $736 million due and a further $375 million in the second half of FY11 and finally $135 million in the first half of FY12.
In total, FKP’s total debt liabilities stand at $1.26 billion.
“The recent negotiations have resulted in FKP obtaining an increase in total facilities available, and an extension of its debt maturity profile.
“The conclusion of these arrangements underscores the strength of FKP’s asset base, cash flows and operating outlook,” Guihot concluded.
Australian Property Journal
