Keybridge Capital Limited

Media Releases

Quarterly Update
7 July 2011

  • Documentation completed for extension of banking facility
  • Reduced exposure to changes in value of Australian Dollar
  • Company continues to realise investments and repay debt
  • Annual results to be released 11 August 2011

As per its stated present strategy, Keybridge is not undertaking new investments. It is managing its existing portfolio with the aim of disposing of assets and/or bringing forward repayments, so as to reduce the Company’s level of debt to the point where the Company is in a sustainable financial condition. The Company continues to consider all reasonable opportunities as they arise.

Debt Facility

As at today’s date, the outstanding principal amount under Keybridge's corporate debt facility is approximately AUD99 million (USD1.00 = AUD1.07). As previously announced, the Company’s banks extended the maturity date of this facility to June 2012.

Since 31 December 2010, Keybridge has made repayments under its debt facility of approximately AUD9.1 million. This amount contributes towards satisfying the minimum repayment obligation of AUD12.5 million required to be achieved by 2 December 2011.

Investments Portfolio

Prior to any year-end changes in carrying values, the composition by asset class of Keybridge's investments portfolio is approximately as follows:

% of Total
Infrastructure & Property

Most of the investment repayments achieved in the past six months have been from Lending transactions, and were achieved at levels at or above the Company's carrying values.

We have previously announced that the Company’s shipping and aviation investments continue to be affected by difficult market conditions, which are acting to depress available charter/lease rates and corresponding asset prices. This may cause the Company, as part of its end-of-year accounts, to adjust downward its carrying values for its shipping and aviation investments. There appears however to be some more positive developments in other transactions, whereby previously booked impairments may be able to be partially written back.


Over the course of the past two years, there has been a shortfall between Keybridge’s operating income and its fixed commitments of bank interest and operating costs. This shortfall will be lower in 2012 than it was during 2011, due to the expiry of the Company’s outstanding interest rate swaps. These swaps matured during the half year to June 2011, reducing the cost of funds under Keybridge’s borrowings substantially.

The Company currently has approximately $5 million of cash-on-hand.

Currency Exposure

Following the extension of the Company’s debt facilities, all of Keybridge’s corporate borrowings are now denominated in US Dollars. This has served to reduce the Company’s exposure to changes in the value of the Australian Dollar. The approximate currency breakdown of Keybridge’s assets and liabilities, prior to any changes in carrying values noted above, is as follows:

US Dollars
Australian Dollars

This net foreign currency asset position means that the Company incurs translation losses when the Australian Dollar appreciates in value against the US Dollar and Euro. Over the past six months, the Australian Dollar has continued to increase in value against the US Dollar, resulting in unrealised foreign currency losses for the Company.

Full Year Results

Keybridge expects to release its end-of-year results on Thursday, 11 August 2011. By that time, we will also have completed updated assessments of the carrying values for the Company’s investments.

Keybridge Capital is a financial services company that has invested in, or lent to, transactions which predominantly are in the core asset classes of property, aviation, shipping and infrastructure.


For further information, please contact:

Adrian Martin
Company Secretary
Tel: +61 2 9321 9000