Tenon signs $71m debt finance deal

Photo / Thinkstock

Wood products company Tenon has signed a new US$57.5 million ($71.5 million) long-term syndicated debt financing facility.

It included a US$50 million revolver facility and a US$7.5 million amortising term loan, 58 per cent-owner Rubicon said yesterday.

The five-year facility included an accordion feature, under which an additional US$12.5 million could be drawn upon, taking the total to US$70 million, without the need to negotiate a new banking arrangement.

Rubicon chief executive and Tenon chairman Luke Moriarty said the new facility was a standard US asset-based lending facility, where the underlying assets and working capital of Tenon secured the obligations to the bank syndicate and acted as the primary covenant. It offered greater operational flexibility than the previous facility, while providing Tenon with the financing capacity to grow its business, Moriarty said.

- NZPA