Trencor Ltd - Foreign Banks Back Trencor In Refina
December 10, 2001
FOREIGN BANKS BACK TRENCOR IN REFINANCING
Trencor Ltd said today it had refinanced existing funding facilities,
extended by its South African banks in November 2000, by means of a US
dollar-denominated letter of credit provided by two foreign banks.
Executive chairman Neil Jowell said the foreign banks were bankers to
Textainer Group Holdings Limited, Trencor's 74% offshore subsidiary which is
the world's largest lessor of standard dry freight marine containers.
"In addition, the US$ loan taken up by Trencor from its South African banks
in 1998 to finance the acquisition of an additional 24% of Textainer, has
been repaid from facilities extended by these foreign banks," he said.
Jowell said that in view of the security afforded by the letter of credit,
the South African banks had agreed to revised terms that were more
favourable to Trencor than those that applied previously.
"The undertakings and banking covenants previously agreed to by Trencor have
been cancelled. Except for asset-based financing, most of the securities
provided in relation to the facilities have been released. Trencor has
provided the foreign banks with a pledge over the shares held by it in
Textainer. These were previously pledged to the South African banks."
Jowell said the letter of credit arrangement would expire on the earlier of
the date on which all local borrowings were repaid to the South African
banks or September 30, 2005. It was anticipated that all South African
banking facilities would be repaid by then.
To provide for the event that the LC did not adequately cover the exposure
of the South African banks, and to ensure that the Trencor group would have
sufficient working capital facilities in place, the new arrangements
included a standby facility of R50 million from the South African banks.
This would be available in the event that a draw down under the LC occurred.
This facility is secured by a pledge of certain assets.
Jowell said it had to be noted that Textainer and its subsidiary and
associate companies continued to operate under their own facilities, with no
recourse to Trencor.
Ends
ISSUED FOR Trencor Limited
BY De Kock & Kerkhoff Communication Consultants
INQUIRIES Neil Jowell (021) 421-7310
Hennie van der Merwe (021) 421-7310 or 083 255 6343
Mike Kerkhoff (021) 424-5280
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