Thursday 30 June 2016 by Company updates

CBL investor call discussing acquisition

On 30 June 2016, CBL held a briefing with Managing Director Peter Harris and Chief Financial Officer Carden Mulholland to discuss the planned acquisition of Securities and Financial Solutions Europe SA (SFS)

The presentation can be viewed here.External link - opens in a new window

Of specific interest for noteholders, the company made the following statement:

 “CBL intends to restructure the ANZ facilities, following repayment of the existing AUD Medium Term Notes, into longer term unsecured funding with the objective of providing certainty and flexibility to the CBL Group”.

CBL is referring to its 8.25% 17 April 2019 bond, and explicitly stating its intention to repay it. We have previously stated that it is very likely the group would seek to payout this debt as soon as possible as is represents an expensive funding source - relative to its significantly improved credit profile. The bond has a first optional call date in April 2017 at 103%.

No expected Brexit impact

CBL has previously stated that Brexit is not expected to affect its European business. CBL's European insurer is domiciled in Ireland, which is not affected by Britain's decision to leave the EU.

Further during the presentation, CBL management confirmed Brexit should not affect SFS or its domicile. SFS is licensed and domiciled in Luxembourg, and passported into France under EU Freedom of Services directives. All business is done in Euros, not in GBP.