- Corporate Debt facility extended for 12 months to June 2013
- Company continues to realise investments and repay debt
Debt Facility
As at the date of this report, the outstanding principal amount under Keybridge's corporate debt facility is approximately USD41 million. The Company's banks have formally agreed to extend the maturity date of the facility from June 2012 to June 2013 and documentation to reflect that extension has now been executed. Key terms for the extension have been outlined in our previous announcement to the market.
Under the terms of the debt facility, minimum principal repayments are required to be made so as to reduce the principal outstanding to USD25 million by 31 December 2012. The Company is exploring a number of opportunities to fulfil this repayment requirement and is confident of its ability to achieve this target in the time required.
Investments Portfolio
Keybridge Capital continues to manage its existing portfolio with the aim of bringing forward repayments where practical, so as to reduce the Company's level of debt to a level that allows the Company to satisfy its corporate loan obligations and to consider its future options. Otherwise, the Company seeks to protect the value of its investments as much as possible. No new investments are being made.
As a result of contracted 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 |
42.5 |
52% |
| Lending |
19.8 |
24% |
| Property |
9.6 |
12% |
| Infrastructure |
7.0 |
9% |
| Shipping |
2.5 |
3% |
| Total |
81.4 |
100% |
Details of the assets which make up each of these investment categories were provided in the Company's half yearly results and presentations. Since 31 December 2011, Keybridge has received realisations as expected from its Aviation and Lending transactions. There have been no material asset realisations during the quarter other than as scheduled. Most investments are performing as expected since the last balance date of 31 December 2011.
Cashflow
Keybridge currently has approximately $4.1 million of cash-on-hand. For the remainder of this financial year, the Company continues to expect to achieve a break-even operating cashflow position. That is, the Company's fixed commitments of interest and operating costs are expected to be met from operating income received (subject to the underlying obligors underpinning the income generated continuing to meet their contractual commitments).
Currency Exposure
The approximate currency breakdown of the Company's assets and liabilities is as follows:
| |
Assets |
Liabilities |
Net |
| US Dollars |
52.9m |
41.5m |
11.4m |
| Australian Dollars |
28.3m |
1.0m |
27.3m |
| Euros |
5.5m |
- |
5.5m |
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 1 July 2011, the Australian Dollar has decreased in value against the US Dollar and gained against the Euro, resulting in an overall net unrealised foreign currency gain for the Company.
Board Directors
In April 2012, Irene Lee retired from the Board as Non-executive Chairman and Peter Wood, Non-executive Director, has been appointed to the position of Chairman. The Board now comprises Peter Wood as Non-executive Chairman, Mark Worrall as Managing Director and Nicholas Bolton as Non-executive Director.
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, finance receivables and infrastructure.
| 