Port Bouvard has refinanced its existing bank facilities with St George Bank to the tune of $167.6 million, renewed until the end of 2011, allowing the property developer to focus on progressing the development of its flagship assets in Western Australia.
Port Bouvard has refinanced its existing bank facilities with St George Bank to the tune of $167.6 million, renewed until the end of 2011, allowing the property developer to focus on progressing the development of its flagship assets in Western Australia.
Specifically the deal provides Port Bouvard a $50 million debt facility for its Gidgegannup development, maturing on new year's eve 2011; a $101 million facitlity for its Oceanique Luxury Apartments project (maturing on October 31, 2011) and a $16.6 million working capital revolving facility, maturing December 31 next year.
Port Bouvard chief executive, John Wroth said the completion of negotiations, struck at competitive rates, is an extremely positive outcome.
"With the completion of the $127 million Oceanique Luxury Apartment development within the Port Bouvard Estate, near Mandurah in Western Australia, expected by mid year and the recent opening of the Forrest Highway linking Point Grey to Perth, the board is confident 2010 will see the company's key assets enter a period of significant development and planning approval progress," Mr Wroth said in a statement.
"The company also continues, as part of its non-core asset disposal strategy, to market domestically and internationally its hotel and villa sites within the Port Bouvard Estate and the Melros development site south of Mandurah."
Chairman Lee Verios said the board was very pleased to continue Port Bouvard's good relationship with St George.
"The board retains a firm belief in the underlying quality of the company's core projects," he said in a statement.
"Our new bank facilities provide a springboard for the company to progress the other capital management initiatives currently being considered, aimed at ultimately realising value for shareholders from the development of its core assets."
Shares in the company, which have been in suspension since October 30, last changed hands for 25 cents.
Full announcement below:
Port Bouvard Limited announces Renewal of Bank Facilities
Key Points:
Project finance facilities with St George Bank renewed until December 2011
Certainty of financing facilities enables the continued development of Port Bouvard Limited's flagship assets
Western Australian property developer ASX-listed Port Bouvard Limited (ASX: PBD) ("the Company") is pleased to advise that it has secured new bank facilities ("New Bank Facilities") with St George Bank. The New Bank Facilities will commence from 1 January 2010 and refinance Port Bouvard Limited's existing bank facilities, with new maturities as set out below:
Gidgegannup Bank Facility - $50 million Facility Limit - Maturity: 31 December, 2011
Oceanique Luxury Apartments Facility - $101 million Facility Limit - Maturity: 31 October, 2011
Working Capital Revolving Facility - $16.6 million Facility Limit - Maturity: 31 December, 2010
The New Bank Facilities are further summarised in Appendix A to this announcement.
The renewal of bank facility terms ensures the Company has strong financial support from its key lender for the two (2) years to 31 December 2011, which marks a critical milestone in the Company's capital management strategy.
Port Bouvard Limited's Chief Executive Officer John Wroth said:
"The completion of negotiations for New Bank Facilities, struck at competitive rates, is an extremely positive outcome for Port Bouvard Limited. It provides the Company with certainty of a financing structure to continue progress on the development of its flagship Western Australian assets.
With the completion of the $127 million Oceanique Luxury Apartment development within the Port Bouvard Estate, near Mandurah in Western Australia, expected by mid year and the recent opening of the Forrest Highway linking Point Grey to Perth, the Board is confident 2010 will see the Company's key assets enter a period of significant development and planning approval progress.
The Company also continues, as part of its non-core asset disposal strategy, to market domestically and internationally its hotel and villa sites within the Port Bouvard Estate and the Melros development site south of Mandurah."
Chairman Lee Verios commented:
"The Board is very pleased to have reached agreement on our New Bank Facilities with St George. St George has been the Company's key lender for a significant period of time and it is pleasing to continue our good relationship with St George.
The Board retains a firm belief in the underlying quality of the Company's core projects. Our New Bank Facilities provide a springboard for the Company to progress the other capital management initiatives currently being considered, aimed at ultimately realising value for shareholders from the development of its core assets. On behalf of the Board I would like to thank all shareholders for their ongoing support for the Company."
