Rural and regional services business Elders Ltd
(ASX:ELD) says it has entered into binding agreements with its banks and U.S. private placement note holders.
Elders says its financiers have agreed to refinance the company’s corporate debt and note facilities.
The company says the new debt and note facilities will comprise of a revolving working capital facility and ancillary facilities, and term debt and note tranches with maturities of 2012 and later.
Elders says the completion of the debt refinancing, the equity raising and the announced asset sales will represent the culmination of a comprehensive restructuring and repositioning of the business.
CEO Malcolm Jackman says the combination of the debt refinancing and the equity recapitalisation that will follow a successful shareholder vote next month, will remove the uncertainty which has weighed on the business over the last 12 months, and secure the future of the company.
