Keybridge Capital Limited

Media Releases

Sale of PR Finance Group Limited’s Subsidiary Motor Finance Wizard Completed
17 September 2013

Motor Finance Wizard sale completed
Keybridge received $10.5 million cash ($11.7 million previously estimated)
Proceeds payable to Keybridge are $1.2 million lower than forecast due to extra costs arising from delays to completion and a major item of which was an unbudgeted fee required by the senior lender to PRFG
Outstanding liabilities in PRFG resulting from the sale are larger than anticipated as a result of poor recent trading
Keybridge currently holds approximately $20.3 million in cash-on-hand representing 11.7 cents per share
Total NTA post transaction estimated at 19 cents per share

Keybridge is pleased to announce that today its wholly-owned subsidiary, PR Finance Group Limited (PRFG), closed the sale of its major asset, Motor Finance Wizard (MFW), to a foreign-domiciled investment company.

The sale generated sufficient funds to fully repay PRFG’s senior debt to the CBA and $10.5 million as partial repayment of the mezzanine loan initially made by Keybridge to PRFG in 2007. In previous communications to the market, Keybridge indicated expectations of an $11.7 million cash repayment resulting from the sale. The $1.2 million shortfall was the result of extra costs associated with the delayed completion of the sale and including an unbudgeted fee charged to PRFG by the senior lender.

An outstanding term of the sale transaction will require PRFG to reimburse the purchaser for any deterioration in the total assets of the business acquired at completion, since a reference Balance Sheet was struck in September 2012. It is currently estimated that PRFG will have a resulting obligation to reimburse up to $6.5 million over a period of up to two years. This amount may be reduced by an earn-out that entitles PRFG to an estimated $1.3 million over two years. These net outstanding liabilities are therefore estimated at $5.2 million and remain recourse to PRFG.

The additional costs associated with completion of the transaction, together with the unexpected increases in the liabilities of PRFG, will result in a reduction to the Company’s NTA from 22 cents per share (as advised on 29 August 2013) to 19 cents per share. Final details will be provided at the AGM to be held on 10 October 2013.

Keybridge is currently undertaking a comprehensive review of PRFG’s remaining businesses, primarily AMX Money (AMX), its short-term consumer-lending business. According to management accounts AMX generated an EBIT of $2.8 million for the full year ending 30 June 2013.

Immediately following the sale, Keybridge holds $20.3 million of cash on hand, representing 11.7 cents per share.

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

For further information, please contact:

Nicholas Bolton
Executive Director
Tel: +61 2 9321 9000
Adrian Martin
Chief Financial Officer
Tel: +61 2 9321 9000