Debt Package Helps Fkp Refinance Short-term Loans
The Age
Wednesday April 2, 2008
FKP Property shares soared to their biggest gain since July 2003 after the company announced it had managed to refinance $300 million in short-term debts, some of which were due last month.
The Brisbane company, which specialises in ownership and management of retirement villages, gained 7%, or 20?, to close at $3.05. But its shares are still down more than 50% since December, when listed property rival Centro announced its disastrous debt position.FKP has replaced two loans totalling $300 million, due last month and in August, with a new syndicated loan facility from banks worth $375 million due over three years and secured by 40 wholly owned retirement villages.Company directors said 1% of that, or $14 million, was due before the end of the 2009-10 financial year.Documentation had also been executed for extensions of $490 million of development and balance sheet facilities, due in 2010. -- NATALIE CRAIG
© 2008 The Age
