B&B successful on market cap review
Investment and funds management house Babcock & Brown has sent a message to the market regarding its debt exposure today, announcing an agreement with its banking syndicate that the market capitalisation review clause is to be removed from its corporate facilities.
The company said the banking syndicate had also agreed to waive its right to review the firm.
The announcement followed two weeks of discussions between Babcock & Brown and its banking syndicate to remove the market capitalisation clause in return for which the company agreed to a pricing change of 50 basis points to a 200 point margin under its corporate facility. Additionally, the company will repay the corporate facilities by approximately $400 million from previously announced assets sales once the transactions are completed.
The company said it did not expect this pricing change to have a material impact on its overall cost of capital.
Babock & Brown chief executive Phil Green said that with the market capitalisation clause now successfully resolved, the company was focused on reducing gearing levels, the sale of non-core investments, directing balance sheet utilisation towards primary businesses and further raising and investing committed unlisted institutional capital.
“Babcock & Brown and its listed funds have already initiated a number of actions aimed at closing or removing the gap between the underlying value of the funds’ assets and the current trading prices of the securities,” he said.
AUTHOR
Mike Taylor
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
