Keybridge Capital Limited

Media Releases

ASX Announcement
1 August 2011
  • Contracts entered into for the repayment of one of Keybridge's aviation investments
  • Repayment is at a discount to book value but will place the Company in a stronger financial position

Keybridge Capital is pleased to announce that binding contracts have been entered into for the repayment of one of the Company's aviation transactions. On settlement, Keybridge will receive approximately USD45.1 million of net proceeds from the repayment. These funds will be used to reduce the Company's corporate debt from its current level of just under USD107m to approximately USD62m. This repayment will satisfy all of the interim repayment milestones under Keybridge's debt facility, including the milestone which triggers a reduction in the facility's effective borrowing margin.

This repayment represents a discount of approximately USD11.8 million from the Company's book value for the relevant investment as at 31 December 2010. This discount will be a charge to profit and loss and, therefore, a reduction in shareholders' funds equal to approximately 6 cents per share. Keybridge's net tangible assets as at 31 December 2010 were approximately 35 cents per share.

Liquidity and pricing in aviation markets have not yet recovered fully from the effects of the global financial crisis. Despite this, Keybridge determined that it was in its best interests to proceed with the repayment transaction. It will allow a material reduction in the Company's borrowings and will place Keybridge in a stronger financial position. Importantly, it enhances the prospects of bringing forward the timetable for a return of value to shareholders.

The aviation investment being repaid has not generated any income or cashflow for Keybridge since 2008 and this was not expected to change over the medium term. Also, over the past 12 to 18 months, the Company has been incurring significant costs in managing this transaction.

Settlement of the repayment is expected to occur no later than 15 October 2011 on completion of conditions precedent which are normal for a transaction of this nature.

Keybridge expects to release its results for the 2011 financial year on Thursday, 11 August 2011.

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:

Mark Phillips
Managing Director
Tel: +61 2 9321 9000