G8 has gone into trading halt. It states that it is in discussions with CFCG Investment Partners, regarding an extension for the payment of the second and final tranche of its share placement
G8 has gone into trading halt. It states that it is in discussions with CFCG Investment Partners, regarding an extension for the payment of the second and final tranche of its share placement. CFCG is a wholly owned subsidiary of China First Capital Group Ltd, a Hong Kong based company with a market capitalisation of ~A$2.2bn.
G8 had entered into a legally binding agreement with CFCG to invest $212.8m. $63.84m was received in February, with the remaining $148.96m due on 17 May 2017.
G8 stated the funds are to be used to:
- Pay out its $50m BBSW +3.9% bond facility maturing 3 March 2018, and $40m of its overdraft
- Assist in the funding of centre acquisitions totaling approximately $200m
While G8 had earmarked some of the money to repay its FIIG bond, even without it we would suggest there are limited concerns about refinance: good cashflow and historically solid access to debt (in Aus and Singapore) and equity markets. Further, taken on face value, this may just be a delay. G8 has requested a halt until Friday 19 May.
G8 capital structure (31 Dec16)
| | Class | Maturity | Principle/ issuance | Cost |
| Debt | Senior unsecured note | 7 August 2019 | A$70m | 7.68% |
| Senior unsecured note | 19 May 2019 | A$270m | 4.75% |
| Senior unsecured note | 17 February 2018 | A$50m | BBSW +3.90% |
| | Secured bank debt facility | 31 December 2018 | A$50m drawn to A$40m |
|
| Equity | Ordinary shares | 385,511,733 on issue | $642m contributed equity |
|
Source: G8
Cash: $26m