Murray & Roberts (M&R), fresh from disposing a stake in its Australian subsidiary Clough, has announced that it has successfully refinanced its South African overdraft facilities with lenders.
The lenders comprise Standard Bank, Absa, Nedbank and RMB. The company said it has concluded the refinancing and upsizing of its existing South African debt facilities from R1.6-billion to R2-billion.
“The new facilities provide the group with additional liquidity to support its South African operations and more certainty in terms of debt maturity, whilst it progresses the deleveraging plan in order to reduce overall debt to an appropriate level and achieve a sustainable long-term capital structure,” the company said.
“Accordingly, this serves as written notice that the board has passed resolutions approving the provision by the company of direct and indirect financial assistance to, among others, its subsidiaries and other related or inter-related companies, as contemplated and in accordance with, inter alia, sections 4 and 45 of the [Companies] Act.”
Two weeks ago, M&R said it had sold Clough to Italian industrial group Webuild in a deal that will have a financial benefit of about R4-billion, which will be achieved “through the cancellation of an outstanding intercompany loan account between Murray & Roberts, the group’s Australian holding company and Clough”.
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