Signs $85 Million Financing Agreement
The facilities, which have a two year term with a provision for the company to extend up to another year, comprise of a $55 million receivables financing facility; a bank guarantee facility and a substantial reallocation facility, all of which will support credit obligations across the energy markets.
The facilities also provide the company with access to an increased suite of hedging instruments to manage electricity risk exposures enabling Australian Power & Gas to continue its track record of sustainable, low-risk growth.
The new facilities will replace the company's existing $50 million debt facility and related $4 million convertible note. The cost of the new receivables financing facility has been struck at a significant reduction from the previous facility (priced at +600bps) reflecting the company's strong financial position.
Australian Power & Gas CEO, James Myatt, said: "These facilities are a further step in the development of Australian Power & Gas' growth as a significant provider of energy products in the Australian market".
Australian Power & Gas' audited results for the year ended 30 June 2012 are due to be announced on 31 August. In July, the company announced a 41.5% increase in cash receipts and an increase to $23.4 million from $1.8 million in underlying operating cash flow for the year.
Australian Power And Gas Company Limited