Coates Hire agrees on "amend and extend" deal with current lenders
Coates Hire Ltd, owned by Carlyle Group and Seven Group Holdings, would be undertaking an "amend and extend" loan with its existing lenders. This would give the equipment hire firm more favorable terms on its AUD 1.75 billion or USD 1.65 billion loan. Under the terms of the deal, the loan's maturity date would extend to 2017. The agreement would also allow owners of Coates Hire to get future dividends.
Carlyle Group Managing Director Matthew Hunter told Bloomberg over the phone that the deal would reduced upfront fees and won't be slapped with currency-hedging expenses. Hunter also said the transaction reflected the quality of the business delivered by Coates Hire.
"This deal was very strongly supported by the bank syndicate and I think that reflects the quality of the business. The option we went with has a much more cost-efficient structure," Hunter added. Carlyle Group and Seven Group each holds a 45% stake in Coates Hire.