Allco succeeds on debt facility
Struggling Allco Finance Group has gained the breathing space it was looking for, announcing today that it has reached agreement with its banking syndicate on the terms of a new senior debt facility.
The company told the Australian Securities Exchange that the key elements of the new senior debt facility involve a maturity at September 30, next year, an agreed repayment schedule that results in senior debt of $400 million by June, next year, and a margin above the relevant currency rate that reduces as the level of the senior debt facility is reduced.
Commenting on the arrangements, Allco chief executive David Clarke said the company was well on its way to achieving the agreed repayment schedule.
“We have a long-term sustainable and leaner business model and a simplified corporate structure,” he said.
The company said that, as indicated earlier, it would make further debt repayments and be released from all remaining contingent commitments owed to the senior banks at the end of July.
It said this would see a total reduction in debt and contingent commitments of $201 million and bring Allco’s senior debt facilities to $691 million at that time.
The company said that discussions regarding the further divestment of assets identified for sale were ongoing.
AUTHOR
Mike Taylor
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
