ANZO announces new $400 million bank debt facilityMay 12, 2011 AMP NZ Office Limited (ANZO) has secured a new $400 million bank debt facility, increasing the size and term of its funding arrangements. The new facility will replace ANZO’s existing $342.5 million facility, the majority of which is due to expire later this year. Funding is provided by ANZ (who are also facility agent), ASB Institutional and BNZ, with equal participation from all three banks. ANZO’s weighted average margin has increased slightly, by around 0.1 percentage points from the pricing under the previous facility. The new facility has three tranches expiring in July 2013, July 2014 and July 2016. The weighted average term to expiry of ANZO’s funding is extended from 0.8 to 3.6 years with laddered maturities improving the rollover profile. The gearing covenant has been extended from 40 to 50 percent providing ANZO with significant covenant headroom and funding capacity. Actual gearing under the revised covenant at 31 March 2011 was 21.7 percent. The facility remains unsecured, with the banks having the benefit of a negative pledge deed providing greater flexibility for future funding. The interest cover covenant remains unchanged at two times earnings before interest and tax. The new facility provides sufficient funding for all of ANZO’s committed capital projects, including the redevelopment of the ANZ Centre (estimated at $76 million). ANZO Chief Executive Scott Pritchard said “The exceptionally high quality of ANZO’s assets and the strength of the underlying cash flows has been reflected in strong interest from the banks and a positive overall outcome. The structure of the facilities and the covenant headroom achieved positions ANZO well to fund any future opportunities.”
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