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ELDERS LIMITED — Capital/Financing Update 2017
Aug 8, 2017
64835_rns_2017-08-08_eb29e1d0-3afa-4e7a-afa6-e3c2675656ac.pdf
Capital/Financing Update
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9 August 2017
Elders refinances $75m multi-option facility
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Further improvement in financing arrangements
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Retention of existing syndicate of ANZ, NAB and Rabo
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36-month tenor
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Retirement of Overseas Bills facility
Elders (ASX: ELD) has completed refinancing of its $75m multi-option facility with improved terms.
The refinance has been agreed with Elders’ existing financiers in accordance with Elders’ objective to maximise efficiency of debt facilities in support of business strategy. The facility includes an uncommitted $25m accordion clause to finance acquisitions, subject to financier consent, which provides a platform for ongoing growth.
The Overseas Bills facility has been retired following the recent divestment of North Australian Cattle Company Pty Ltd which was sold as part of Elders’ exit from live export logistics.
Details of the facilities are included in the Annexure.
Chief Executive Mark Allison said that the refinance “took advantage of continued improvement in business performance evidenced by the Company’s financial results for the 6 months to 31 March 2017. “We are working hard to reduce cost and improve efficiency throughout the business. This refinance meets both of those objectives.”
Mr Allison noted that Elders was very pleased to continue its banking relationship with ANZ, NAB and Rabo.
| Further Comment: | |
|---|---|
| Mark AllisonChief Executive Officer0439 030 905 | Richard DaveyChief Financial Officer0437 167 772 |
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Annexure
Outline of Elders Refinance Structure
| Facility | Description | Tenor | Maturity | Max. Limit ($m) |
|---|---|---|---|---|
| A. Multi Option | Multi-option facility to | 36 | Aug 2020 | 75 |
| be used for general | ||||
| corporate purposes | ||||
| B. Livestock / | To fund Killara | 12 | Mar 2018 | 20 |
| Feed | inventory and feed | |||
| C. Overseas Bills | Retired | |||
| D. Debtor | Debtor securitisation | 6 * | Nov 2017 | 183 |
| Securitisation | for the retail business | |||
| E. Overdraft | Transactional | 12 | Mar 2018 | 10 |
| banking facility | ||||
| Total | 288 |
* Short-rolled to enable restructure prior to commencement of APS120.
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