360 Capital Industrial Fund
Capital management
In late March 2012 the Fund entered into a new, three-year finance facility with NAB. The new facility further strengthens the Fund’s capital position and incorporates reduced interest rates. The three-year facility relates to the Fund’s entire borrowings of $162.4 million and simplifies the Fund’s debt capital structure by reducing the number of financiers from two to one. The finalisation of documentation for the new facility followed a number of short term extensions. Suitable interest rate hedging arrangements will be put in place as soon as practicable.
At the end of the Half Year ending December 2011 the Fund was compliant with all loan covenants.
The tables below detail the Fund’s NAB and bankwest debt facilities as at 31 December 2011:
| NAB debt facility | Loan Covenant/Limit | 31 Dec 2011 | 30 Jun 2011 |
| Expiry date |
31 Mar 2012 |
||
| Loan type | Senior debt | ||
| Drawn amount | $160.0m | $160.0m | $163.9m |
| LVR1 | <62.5% | 60.4% | 61.4% |
| ICR2 | >1.40 times | 1.87 times | 1.63 times |
| Bankwest debt facility | Loan Covenant/Limit | 31 Dec 2011 | 30 Jun 2011 |
| Expiry date |
31 Mar 2012 |
||
| Loan type | Senior debt | ||
| Drawn amount | $2.4m | $2.4m | $2.4m |
| LVR1 | <55.0% | 42.5% | 42.5% |
| ICR2 | >1.75 times | 3.04 times | 2.20 times |
Notes:
1. Loan to value ratio (LVR) calculated with reference to the loan facility documentation. The RG46 defined gearnig ratio for the combined facilities was 58.4%
2. Interest cost ratio (ICR) calculated with reference to the loan facility documentation. The RG46 defined ICR for the combined facilities was 1.52 times
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