NAB and Rubicon reach agreement
Allco’s Rubicon Asset Management Limited has gained some expensive breathing space with respect to its Rubicon Japan Trust, with the National Australia Bank confirming a $60 million revolving loan facility has been extended to April 30, next year.
However, some strict conditions have attached to the extension of the loan, including that the trust must undertake a program of asset sales over the year to reduce the outstanding amount of the facility and $10 million be repaid by September 30, this year.
The conditions also dictate that all net cash flow be held in an account under the bank’s control and be applied at NAB’s discretion to either reduce the facility or be held as cash collateral against the foreign exchange hedging contracts.
The announcement, made to the Australian Securities Exchange, also declares that there can be no distributions to unit holders, including the distribution declared for the period ending December 31, last year.
The announcement said NAB would be able to make margin calls under the foreign exchange hedging contracts, however, if the trust has insufficient cash funds available to meet any margin call obligations, this would not be an event of default or potential default under the loan facility.
AUTHOR
Mike Taylor
Recommended for you
A strong demand for core fixed income solutions has seen the Betashares Australian Composite Bond ETF surpass $1 billion in funds under management, driven by both advisers and investors.
As the end of the year approaches, two listed advice licensees have seen significant year-on-year improvement in their share price with only one firm reporting a loss since the start of 2025.
Having departed Magellan after more than 18 years, its former head of investment Gerald Stack has been appointed as chief executive of MFF Group.
With scalability becoming increasingly important for advice firms, a specialist consultant says organisational structure and strategic planning can be the biggest hurdles for those chasing growth.
