Opus given $20m debt deadline extension, new deal ‘imminent’

Commonwealth Bank may become part-owner of Opus Group under the terms of a proposed debt deal.

Opus reported in its 2012-13 results that it was required to repay $20 million of debt to the Commonwealth Bank by 30 September.

The group’s annual report, which was published yesterday, reported that the Commonwealth Bank had extended the deadline to 2 October. The two parties expect to strike a new deal some time today, according to the annual report.

The current agreement requires Opus to repay $25.9 million of debt by 30 June 2014, including $20 million by the deadline that was pushed back to 2 October.

Under the terms of a proposed new agreement, the Commonwealth Bank may end up owning 10% of the company, according to Opus.

[Related: Opus CEO makes ProPrint Power 50]

“The proposed variation deed extends the [debt] facility to September 2016, with progressive debt reduction to be implemented via the sale of the outdoor media division, raising equity capital and various capital management and other initiatives over the term of the facility,” said Opus.

“The amortisation timetable provides that at least $27.5 million is repayable throughout the period to 30 June 2014 under the revised debt facility structure.

“This amount includes scheduled amortisation and additional debt reduction through the initiatives described above.

“As part of the extension and variation arrangements – and in consideration for Commonwealth Bank agreeing to them – the company will grant Commonwealth Bank a warrant which upon an exit event for all Opus Group shareholders will entitle Commonwealth Bank to a 10% equity interest in the company.”

[Related: Ups and downs of Opus Group]

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