Mobile Industries Limited / Trencor Limited - Tren
TRENCOR LIMITED
(Reg No 1955/002869/06)
("Trencor")
Share Code: ISIN:
TRE ZAE000007506
TED2 ZAE000007282
MOBILE INDUSTRIES LIMITED
(Reg No 1968/014997/06)
("Mobile")
Share Code: ISIN:
MOB ZAE000004602
MBN ZAE000012274
MOBD ZAE000004610
TRENCOR BANKING FACILITIES
Trencor and Mobile are pleased to announce that Trencor has concluded the
effective refinancing of existing funding facilities extended by its South
African banks (the existing facilities were announced on 21 November 2000
and detailed in the annual report in respect of the year ended 30 June
2000).
This refinancing has been achieved through securing these funding
facilities by means of a US Dollar denominated Letter of Credit ("LC")
provided by two foreign banks who are bankers to Textainer Group Holdings
Limited ("Textainer"), Trencor's 74% offshore subsidiary. In addition, the
US$ loan taken up by the Trencor Group 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.
In view of the security afforded by the LC, the South African banks have
agreed to revised terms that are more favourable to Trencor than those that
applied previously. The undertakings and banking covenants previously agreed
to by Trencor have been cancelled and, save in respect of 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 (previously pledged to the South
African banks).
The LC arrangement will expire on the earlier of the date on which all
local borrowings are repaid to the South African banks or 30 September 2005.
It is anticipated that all South African banking facilities will be repaid
by that date.
In order to provide for the event that the LC does not adequately cover
the exposure of the South African banks, and to ensure that the Trencor
Group will have sufficient working capital facilities in place, the new
arrangements include a standby facility of R50 million from the South
African banks which will be available in the event that a draw down under
the LC occurs. This facility is secured by a pledge of certain assets.
Attention is drawn to the fact that Textainer and its subsidiary and
associate companies continue to operate under their own facilities, with no
recourse to Trencor.
On behalf of the boards
NI JOWELL Chairman Trencor Limited
C JOWELL Chairman Mobile Industries Limited
10 December 2001
www.trencor.net
www.mobile-industries.net
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
