This article is from the Australian Property Journal archive
RAMS Home Loans shares nosedived to record lows yesterday after it delivered bad news to investors.
RAMS shares closed 48.5 cents lower at 86.5 cents yesterday on the trade of 67 million shares. Two weeks ago, the company debuted at $2.50 on the Australian Stock Exchange.
RAMS told the market yesterday that is XCP program, where the company has a $6.17 billion, was due to roll maturing notes on Wednesday night.
But RAMS said due to a lack of market liquidity, it was unable to affect these rollovers and as a result the two programs have been extended by 180 days and the refinancing period has commenced.
RAMS did confirm it has no sub-prime lending exposure and all its loans are 100% mortgage insured.
RAMS said the underlying business of the company continues to operate profitable.
Meanwhile, RAMS has received approval for temporary increases in its warehouse facilities totalling $1 billion from two of its providers.
Australian Property Journal
