Earthmoving equipment group Emeco says it is cashed up and on the lookout for “value creating opportunities” after refinancing its $450 million debt facility with a syndicate of banks.
Emeco announced today it had entered a new debt facility comprising a three year, $200 million, a four year $125 million and a five year $125 million revolving multi-currency facility from a group of major domestic and international banks.
The company said its current available debt facilities totalled $624 million, including $US140 million in US private placement notes issued in May.
Emeco said its net debt was $385 million on June 30, giving the company headroom of $239 million.
“Today's extension of the bank facility, together with the long-daited USPP notes issued in May, provides certainty on the company's funding structure and access to capital which will support the delivery of Emeco's medium to longer term business objectives,” chief financial officer Stephen Gobby said.
Mr Gobby said the facility provided the company with long-term visibility of its funding profile and further capacity to pursue value creating opportunities.
At 10:30AM, WST, Emeco shares were down 1.3 per cent, trading at 73.5 cents.
