Opencast mining contractor and construction materials supplier Buildmax has successfully restructured the debt-funding model of its subsidiary Diesel Power.
Major lenders Absa, Nedbank and Standard Bank have agreed to reschedule the company’s asset-based funding commitments and restructure its transactional banking facilities.
A R220-million term loan, which would be amortised over 45 months and repayable in equal quarterly instalments, would replace the current asset-based funding facilities.
The term loan would refinance any outstanding asset-based funding commitments and reduce the current overdraft facility, converting certain current debt obligations to noncurrent.
Further, the banks advanced a R16-million bridge financing facility, repayable on September 30.
“This debt restructure has strategic alignment, significantly improves the working capital position of the company and amortises conservatively and congruently with the remaining life of the assets that form part of the security pool,” Buildmax said in a statement to shareholders.