Donaco International Limited (ASX:DNA) ("Donaco" or "the Company") has refinanced its USD20 million working capital facility that was announced to the ASX on 23 June 2015 and 1 July 2015. The refinancing will save the Company approximately USD3.8 million in financing costs over the next two financial years (FY17 and FY18), compared to the cost of repaying the facility in accordance with its original terms. The refinancing was provided by Mega International Commercial Bank Co. Ltd of Taiwan ("Mega Bank"). Of the original USD100 million facility with Mega Bank, Donaco has now repaid USD10 million of the principal amount in January 2016, and a further USD15 million in July 2016, leaving USD75m to be repaid.
The total outstanding debt under these arrangements remains unchanged at USD95 million. This will be repaid over the remaining two year term of the Mega Bank facility, with a balloon payment in July 2018 of USD35.8 million.
Donaco maintains a healthy balance sheet, with net debt to equity of 16% (based on unaudited management accounts). The refinancing announced today will further reduce finance costs.
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Donaco International Ltd Ben Reichel, Executive Director T: +61-412-060-281 E: enquiries@donacointernational.com WWW: www.donacointernational.com
