Silver Chef restructures debt on decision to dump GoGetta
Written on the 3 April 2018 by David Simmons
Listed equipment services provider Silve Chef Group (ASX: SIV) has completed negotiations with lenders in relation to the restructuring of the company's senior lending arrangements.
The negotiation follows the company's decision to exit its GoGetta equipment financing operations to focus exclusively on the growth of its core hospitality business in Australia and internationally.
The completion of these negotiations, combined with the Securitisation Warehouse Facility (SWF), supports the company's significant growth opportunities across Australia, New Zealand and Canada.
The group's decision to ditch GoGetta triggered the renegotiation of the $350 million senior corporate facility (SCF), including a facility reduction program, repricing, and the resetting of covenants.
All cash associated with the GoGetta exit will be used to repay the SCF, with a separate amount of GoGetta debt of $120 million to be created in addition to the remaining $230 million of hospitality debt.
The company says the debt will be fully repaid by March 2019.
In December 2017 the company announced it had executed a new $200 million SWF with Westpac Bank to finance new Australian rental contracts.
The performance of the SWF over the next few years is expected to produce a reduced weighted average cost of capital.
The initial drawdown of the SWF will occur in early April and will be used to find new Rent-Try-Buy contracts.
Business News Australia
Author: David Simmons