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Ebos funding line of $135m smaller than flagged

BUSINESSDESK: Ebos Group, which bought animal health and pet food products maker Masterpet last year, has settled on a slightly smaller funding line than previously indicated as part of its new banking syndicate.

The Christchurch-based company entered into a new finance facility with ANZ National Bank and Bank of New Zealand worth $135 million with staggered expiry dates between August 2014 and August 2016, it said.

The medical equipment distributer previously flagged the new facility would allow borrowings of up to $145 million, according to its first-half report.

"While there has been no major change in the overall group bank debt levels, the new syndicated facilities provide for greater flexibility for future growth," the company said.

The new funding line replaces a $99 million facility and a $60 million bridging loan that expired at the end of April.

Ebos took out the short-term loan to partially fund the Masterpet acquisition. As at December 31, it had a total bank debt of $148.1 million.

The shares fell 0.3% to $7.53 in trading today, and have gained 20% since the purchase was announced at the end of December.

The stock is rated a "buy" according to a consensus of two analysts compiled by Reuters, with a median target price of $7.85.