Debt Facilities
AET is in compliance with its Financial
Charges Ratio (FCR) and all other debt covenants.
As at 30 June 2010, AET had made its base debt
repayment obligation of $80 million. AET did not achieve the
stretch target obligation and as a result, the margin on both the
NAB facility and the Senior Secured Notes will increase by 0.5%
pa.
AET has one final amortisation target of $9
million to be met by 31 December 2010. This will be funded
through asset sales and surplus cash flows. To date, funds
from sales settled/to be settled amount to $4.1 million. This
amortisation requirement will only apply should a refinancing not
occur between now and 31 December 2010.
Refinancing of Debt
Management is currently actively reviewing its
debt position in order to achieve the following:
- Potential early repayment of the Senior
Secured Noteholders;
- Margins that may reflect the improved risk
profile of AET following the move away from the receivership of its
major tenant and the reduced gearing levels through asset
sales. AET’s current weighted average cost of debt funding is
9.8% pa;
- Greater certainty as to the debt funding of
AET, with all debt currently maturing on 31 July 2011;
- If appropriate, hedging arrangements that
protect against upward movements in underlying borrowing rates;
and
- Cessation of debt amortisation
targets.
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