Consolidated Press Holdings-linked Arctic Capital has become central to a plan to recapitalise the troubled Living and Leisure Australia Group.
Living and Leisure notified the Australian Securities Exchange today that it had entered into a series of arrangements with its senior financier, National Australia Bank (NAB), other creditors and Arctic Capital to support the orderly recapitalisation of the group.
The announcement said the major components of the proposed recapitalisation included a renounceable rights offer to raise at least $90 million and the refinancing of Living and Leisure’s senior secured debt and unsecured debt.
It said Arctic had agreed to underwrite the rights offer, subject to a number of conditions including Arctic’s acquisition of the majority of the company’s debt facility with the Octaviar Premium Income Fund and the support of NAB in the refinancing of the company’s senior secured debt in conjunction with the rights offer.
The recapitalisation strategy entails Living and Leisure meeting a number of deadlines sufficient to satisfying its creditors, including providing evidence to NAB by May 30 that it has signed a credit approved offer for a lending facility to repay its debt in full.
Commenting on the move, Living and Leisure independent chair Julanne Shearer said the board believed the recapitalisation proposal provided the best opportunity for security holders and creditors because it strengthened the financial position of the group while retaining the company’s businesses.
