This article is from the Australian Property Journal archive
LIVING and Leisure Australia Group is moving forward with the Recapitalisation Proposal by lodging documents for its Rights Offer.
LLA’s independent chair Julanne Shearer said the board has every confidence in the completion of the Recapitalisation Proposal now that the offer document for the Rights Offer has been lodged and commercial agreement has been reached with new senior and mezzanine financiers.
The proposal is backed by James Packer’s Arctic Capital and ANZ Bank, the new senior financier. LLA has agreed with its senior secured lender, National Australia Bank, that NAB will continue to forbear in relation to the maturity of LLA’s senior secured facilities until August 08 allowing time for the Rights Offer to be completed and the recapitalisation to occur.
LLA has secured the commitment of the ANZ to provide new senior debt facilities. The proposed facilities include a $50 million senior secured facility with a working capital facility of an additional $10 million.
“We assure our stakeholders that we believe that the LLA recapitalisation proposal is in the best interests of LLA’s creditors and securityholders,” Shearer concluded.
Eligible LLA securityholders will be entitled to subscribe for new securities in LLA through a 12.5 for 1 renounceable entitlement offer to raise approximately $100 million. The issue price is 4.0 cents per new security.
Proceeds of the offer will be used to recapitalise LLA by reducing existing debt facilities and creditors; provide working capital for the group; and contribute to the costs of the offer.
Funds raised will result in a significant reduction of LLA’s gearing to 30%.
Meanwhile, LLA said an agreement has been reached for the replacement and reduction of the total debt owed by LLA to the Octaviar Premium Income Fund by various parties including Arctic Capital.
Arctic Capital will also buy Living and Leisure Australia Management Limited, the responsible entity of the Living and Leisure Australia Trust, from the Octaviar Group.
LLA expects will recommence trading on from market open today.
Australian Property Journal
