This article is from the Australian Property Journal archive
OAKS has signed a deal with its financier ANZ Bank and National Australia Bank to extend its current banking facilities for a further 12 months to July 30 2011.
Oaks currently has approximately $90 million in debt drawn under these facilities. The combined margin and line fees attributable to these facilities have been set at 325bp above the benchmark bank bill rate.
Meanwhile until the dispute with the beneficiary of the Dubai letter of credit (the landlord) is resolved to the satisfaction of the financiers, Oaks must, not later than October 31 2010 provide cash cover to ANZ in the amount of $7.1 million. If the letter of credit is not called upon, and the dispute is resolved to the satisfaction of the financiers, these funds will be released to Oaks.
Oaks must complete a capital raising to raise at least $15 million, to be applied towards debt reduction, by October 31 2010. If on or after October 31 2010, Oaks gearing ratio is not below 2.5 times, then Oaks must on a quarterly basis apply 75% of excess cash flow towards debt reduction.
And Oaks may not, without approval by the financiers, pay a dividend if it does not complete the equity raising referred to above.
Australian Property Journal
