Macau Property Opportunities Fund Enters HK$105M Credit Facility

24th Jun 2010 07:50

LONDON (Dow Jones)--Macau Property Opportunities Fund (MPO.LN) said Thursday it has entered into a credit facility arrangement for up to HK$105 million ($13.5 million) with Banco Weng Hang S.A., one of Macau's leading local banks. MAIN FACTS: -The credit facility will be used to finance the redevelopment of Rua da Penha, MPO's first residential redevelopment project in Macau and to partially refinance the original cost of acquisition of the property. -Drawdown of the loan will be subject to usual conditions, including agreement of final documentation. -The facility is non-recourse to MPO and is for a term of two years to July 2012, with the first drawdown to be made no later than Sep. 22. -Interest will be charged at three-month HIBOR plus 1.65% per annum. -With the agreement of this loan facility, Rua da Penha is now considered fully funded. -Continues to adopt a highly measured cash management policy, retaining a strong and prudent balance sheet. -At May 31, had a cash balance equivalent to $32.5 million. -MPO's current loan-to-value, inclusive of cash balances, equates to 23.76%. -Following the full drawdown of this latest loan, this will increase to 27.68%. -Shares closed Wednesday at 130.0 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires June 24, 2010 02:50 ET (06:50 GMT)