Airwork refinances, expands bank debt facility

The new facility would allow Airwork to identify further business opportunities, it said.

Airwork Holdings, the aircraft services business that's 75 percent-owned by China's Zhejiang Rifa Holding Group, has refinanced and increased its bank debt facility.

The new syndicated debt facility of US$195 million replaces the existing facilities of US$135 million, the Auckland-based company said in a statement. The new facility would allow Airwork to identify further business opportunities, it said.

The syndicate is made up of Commonwealth Bank of Australia, its existing funder, Bank of New Zealand, Industrial and Commercial Bank of China, and Bank of China, who will provide multi-currency cash advances, overdraft, bank guarantee, and amortising facilities, with terms of up to four years.

The overall margins remain consistent with Airwork's existing funding arrangements, it said, without giving details. In 2016, it paid 3.71 percent annual interest on its NZ dollar loans and 2.84 percent on its US dollar loans under its multi-currency cash advances facility.

Airwork shares last traded at $4.37 and have declined 2.9 percent in the past 12 months.

(BusinessDesk)