Ausgroup

Ausgroup: Obtained consent from noteholders to amend the details of its Series 001 $110m 7.45% notes due 2016
1. Upfront principal redemption of $4m on 20 Oct '16
2. Waiver of certain financial covenants
3. Pushed back original maturity date by 2 years to 20 Oct '18
4. In line with the extension, the interest rate on the notes will be adjusted upwards to 7.95% (1st year of extension), and 8.45% (second year of extension).
5. Interest will also be paid out on a monthly basis.

As at 30 Jun, Ausgroup's net gearing stood at a whopping 309% with only $22.1m in cash reserves. The agreement with noteholders essentially provides Ausgroup with a much needed lifeline. However, headwinds continue to persist particularly for the offshore segment of its business.