Pub owner ING Real Estate Entertainment Fund
(ASX:IEF) has been granted a five year extension from lenders on a $180 million senior debt facility which now matures in February 2015.
The company will also work closely with Icon Hospitality, its largest tenant, to help the troubled company.
The loan extension is subject to a number of conditions that need to be completed by March 15 including financing a deal to help Icon and improving the funds loan to value ratio to 70%.
The fund says it will invest $8 million upgrading the venues that Icon leases, provide Icon with a $1 million rent reduction and waive rent increases until June 30, 2014.
ING Real Estate Entertainment Fund will also defer three months of Icon’s rent in fiscal 2010 with repayment over the next two years.
In return Icon will issue the fund with a five year call option, providing the fund with the option to acquire a 49.9% interest in Icon for a nominal amount.
At its half year results briefing the company announced a narrower loss of $24 million for the six months to December 31, 2009, compared to a loss of $28.9 million recorded for the same period a year ago.
ING Real Estate Entertainment Fund reported a loss of $54.13 million for fiscal 2009.
