Tricom recapitalisation
Babcock and Brown has joined with a number of private investors and ANZ to recapitalise stock broking firm Tricom.
Babcock and Brown announced to the Australian Securities Exchange today that it had participated with ANZ, Tricom management and certain private investors introduced by Tricom management in the recapitalisation.
It said it had increased its existing exposure of $35 million to a maximum of $40 million by underwriting a further $5 million of additional funds.
Babcock and Brown said that maximum exposure had already been reduced to $37.5 million and that its total exposure remained secured, with no further capital injection contemplated following the recapitalisation.
The announcement said the recapitalisation took the form of new equity from parties other than Babcock and Brown and a stand still agreement from Tricom’s secured lenders — ANZ and Babcock and Brown.
The company said it was participating in the recapitalisation to protect Babcock and Brown’s exposure and to ensure an orderly rundown of the balance of Tricom’s securities loan book.
AUTHOR
Mike Taylor
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