This article is from the Australian Property Journal archive
LENDERS have given Challenger Diversified Property Group an extension on a $100 million (Tranche 1) of its $500 million multi-currency facility.
Tranche 1 was due to expire in October 2008.
CDI’s fund manager Trevor Hardie said this is a good outcome in the current credit market.
“With the extension of Tranche 1, the risk of near-term refinancing is removed and we have secured greater draw-down flexibility for financing our development projects,” he added.
The refinance extends the maturity profile of the facility by 21% from 1.9 years to 2.3 years. The current drawn balance of Tranche 1 will be transferred to an existing tranche which is priced at a margin of 60 bps.
Under the new agreement, the $100 million will be repaid in three tranches with $28.6 million in October 2009 at a margin of 0.85%; $35.7 million in July 2010 at a margin of 1.00%; and $35.7 million in July 2011 at a margin of 1.10%.
The three new tranches will remain undrawn for future commitments. Following the refinance CDI’s weighted average cost of debt is 7.7% for Australian debt ($222 million) and 5.0% for the European debt (€53 million / $A87 million).
Australian Property Journal
