Following the market update issued last week, Keybridge has reached agreement in principle for the repayment of another of its loans.
In this case, Keybridge has agreed to accept repayment of the loan at a discount to its book value.
The loan, to an ASX-listed company in the aviation sector, has a book value of approximately $15 million. Keybridge has agreed to accept repayment in the form of $10.4 million in cash plus shares in the company. At the company’s current share price, this aggregate repayment would equate to a discount to Keybridge’s book value of approximately $3.7 million.
The cash proceeds from this repayment would be applied to further reduce Keybridge’s debt facility and would mean that loan repayment obligations to June 2010 have been substantially satisfied.
Completion of this loan repayment is subject to final documentation. Settlement is expected to occur in early January 2010.
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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