E&T reveals debt restructure plan

WINEMAKER Evans and Tate Ltd says it has launched a binding heads of agreement with ANZ bank to restructure the company’s balance sheet, which will include issuing 409 million new shares to a “yet to be identified” third party co-investor. WA Business News reported a fortnight ago that Goldman Sachs JBWere was understood to be in discussions with E&T about taking a stake in the company through its Trans-Tasman Private Equity Fund. As part of the heads of agreement, E&T said it would seek relevant approval from security holders to approve the issue of about 409 million shares at 11 cents each to ANZ and a strategic third party co-investor at a meeting expected to be held in July or August. The issue of shares will raise $45 million, to be used to repay the company’s existing debt to ANZ and reduce that debt to almost $55 million with facilities of almost $60 million being retained. An additional 20 million shares will be issued to ANZ, also valued at 11 cents per share, as a 5 per cent fee for introducing the third-party co-investor and in lieu of cash payment, E&T said. - Julie-anne Sprague