llp receives bank waiver

Not coming up under announcements on HC...

Good news is that it looks like no change to interest rate margins. Negative is that my guess is no dividends until next financial year, however I wasn't expected any this year.


LEND LEASE PRIMELIFE RECEIVES BANK WAIVER
Lend Lease Primelife (“LLP”) today announced that it has finalised commercial negotiations
with its banks and Lend Lease Corporation Limited (“LLC”) regarding the terms of a waiver in
respect of an interest coverage covenant breach for the period ended 30 June 2009, subject to
documentation. LLC has agreed to vary certain terms of the subordinated debt that it has with
LLP.
The primary terms of the waiver are:
�� The interest coverage ratio which includes non-cash items will be replaced with a cash
covenant (1.25 times);
�� The facility limit is required to be reduced to $350m by 30 June 2010. The current facility
limit of $525m was drawn to $460m at 30 June 2009;
�� The majority of the proceeds of asset sales will be applied against bank debt until the
facility limit of $350m is achieved; and
�� There is no change to the leverage ratio covenant of 50%. LLP maintains significant
headroom in this covenant with a ratio of 32% at 30 June 2009.
In order to reduce debt to the required level, LLP has realised asset sales with $20m received
to date and with a number of other sales in the pipeline. LLP will continue to divest assets in an
orderly manner so as to reach the required target by June 2010. LLP has already significantly
reduced the level of bank debt from $600m at 31 December 2008 to the current level of $460m.
The near term tranche of debt requires refinancing at the end of 2010. LLP maintains
engagement with its banks to refinance and further restructure borrowing facilities prior to this
time.
Rod Fehring, Chief Executive Officer of LLP said “There has been solid improvement in
operating cashflow since Lend Lease took over as manager and improving underlying cashflow
performance remains a high priority for LLP going forward. We have now agreed bank
covenants that are aligned with the way we need to operate the business”.
Further details contact:-
Rod Fehring – LLP – Ph: 0417 118 335