- Investment realisations of $16.5 million since 30 June 2010
- Debt repayment milestones now met in full
- Continuing exposure to appreciating Australian Dollar
Investments Portfolio
Keybridge Capital currently is not undertaking new transactions. It is managing its investments portfolio with the aim of bringing forward repayments, where they can be achieved at acceptable prices, so as to reduce the Company's level of debt. Where this is not practicable, the Company is seeking to protect the value of its investments as much as possible.
From 30 June 2010 to the date of this report, Keybridge has received investment repayments totalling $16.5 million. These repayments have been as follows:
- $9 million from the refinancing of an aviation transaction;
- $5.5 million from one of the Company's Australian property investments; and
- $2 million of continuing repayments from a US property investment and a lending transaction.
The refinancing of the aviation transaction involved an increase in the amount of deal-specific senior debt, which was facilitated by a four year extension of the underlying airline lease. This increase in senior debt flowed through to Keybridge as a partial repayment of its mezzanine loan.
All repayments received by the Company so far this year have been consistent with the Company's carrying values at 30 June 2010.
As a result of repayments and movements in foreign exchange rates, the composition by asset class of Keybridge's investments portfolio as at the date of this report is approximately as follows:
| |
AUDm |
% of Total |
| Aviation |
110 |
59% |
| Lending |
35 |
19% |
| Shipping |
24 |
13% |
| Infrastructure |
10 |
5% |
| Property |
8 |
4% |
| Total |
187 |
100% |
Debt Facility
The outstanding principal amount under Keybridge's corporate debt is approximately $117 million. Under the terms of the debt facility, repayments of $70.5 million were required to be made by March 2011. Repayments already achieved total $79 million, meaning that all interim repayment obligations have been satisfied.
The debt facility matures in June 2011 and our key objective in the coming year will be to achieve a refinancing of this facility which enables the Company to continue realising investments in an orderly manner.
Currency Exposure
The approximate currency breakdown of the Company's assets and liabilities is as follows:
| |
Assets |
Liabilities |
Net |
| US Dollars |
148m |
94m |
54m |
| Australian Dollars |
32m |
28m |
4m |
| Euros |
7m |
- |
7m |
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. Since 30 June 2010, the Australian Dollar has appreciated substantially against the US Dollar. This has resulted in a net unrealised foreign currency loss for the Company of approximately $9 million.
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.
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