BUILDMAX LIMITED - Conclusion of debt restructuring in subsidiary Diesel Power (Pty) Ltd (the Company)

Conclusion of debt restructuring in subsidiary Diesel Power (Pty) Ltd (“the Company”)

Buildmax Limited
Incorporated in the Republic of South Africa
(Registration No. 1995/012209/06)
Share Code: BDM
ISIN Code: ZAE000167318
("Buildmax")

CONCLUSION OF DEBT RESTRUCTURING IN SUBSIDIARY DIESEL POWER PTY LIMITED (“THE COMPANY”)
 
In previous announcements we have mentioned that the Company’s equipment has
traditionally been financed over 3 years on a 50/30/20 basis. Whilst we preferred this
conservative funding model relative to the industry norm, it became inappropriate in the
current mining environment and the board approached the banks to restructure the funding
on a more appropriate basis.

The board of directors of Buildmax (“the Board”) is pleased to advise shareholders that the
Company has concluded discussions with its major lenders, being ABSA Bank Limited,
Nedbank Limited and The Standard Bank of South Africa Limited (collectively, “the
Lenders”), to reschedule the Company’s asset based funding commitments and restructure
its transactional banking facilities (“the Debt Restructuring”).
 
In terms of the Debt Restructuring, the current asset based funding facilities of the Company
will be replaced with a Term Loan which will be amortised over 45 months, repayable in
equal quarterly installments.

The value of the Term Loan is R220 million which will refinance outstanding asset based
funding commitments and reduce the current overdraft facility, in both cases converting
certain current debt obligations to non-current. In addition, the Lenders have advanced
bridge financing to the Company of R16 million, repayable on 30 September 2015.
 
Interest rates, market related pricing, covenants and security provisions typical of a facility of
this nature apply. This Debt Restructure has strategic alignment, significantly improves the
working capital position of the Company and amortises conservatively and congruently with
the remaining life of the assets that form part of the security pool.
Benoni

31 July 2015

Sponsor to Buildmax
Questco (Pty) Ltd

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