Eurocastle Investment Limited (Frankfurt Stock Exchange: EUI1 and Euronext Amsterdam: ECT) has announced that it has refinanced its 175 million corporate loan facility under which 115 million is outstanding.
Historically a 364-day facility, the restructured facility has been termed-out to mature on 30 June 2011. It contains scheduled amortisation payments requiring the facility to be paid down to 95 million by 30 June 2009, to 65 million by December 31, 2009, to 45 million by June 30, 2010 and to 20 million by December 31, 2010.
The interest rate on the loan has increased from 2% to 8% over 3-month Euribor and financial covenants have been substantially renegotiated to the benefit of Eurocastle. Eurocastle expects to try to raise additional capital in the near to medium term and, under the terms of the Facility, is required to raise at least 15.4 million in additional capital.
It is expected that this would be raised primarily from existing shareholders and Eurocastle is pleased to confirm that it has already secured a conditional undertaking from a major shareholder in relation to 15.4 million in new capital. Further details of any capital raising plans are expected to be published in the coming weeks.