Power generation company Babcock & Brown Power
(ASX:BBP) has been given extra time to refinance $2.7 billion in debt from its banking syndicate.
The company says its syndicate of 11 banks including NAB, ANZ and the Commonwealth Bank have agreed to give the company till September to complete the restructure of its debt facilities.
Lenders have also agreed to lower the default interest cover ratio on the credit facilities for the June quarter, from 1.35 times to 1.1 times.
In May the company said its interest cover ratio on one of its credit facilities had fallen below 1.5 times in the March quarter placing the facility into lock up, a condition where the funds can only be used to repay debt.
Babcock & Brown Power maintained its guidance for normalised profit before interest, tax, depreciation and amortization for fiscal 2009, to fall to between $260 million and $270 million.
Babcock & Brown Power posted a $427 million loss in 2008.
