Macquarie Leisure Finalises US Funding Facility

The Macquarie Leisure Trust Group has finalised a US$10 million debt facility with its long term transactional banker JP Morgan Chase of Dallas, Texas, USA.

Speaking of the funding, Group Chief Executive Greg Shaw advised that "this new five year facility will support (our) Main Event business in Texas.

"Upon drawdown of the facility Australian net borrowings are expected to fall to approximately $247 million.

"The new US facility is the only external debt for the Main Event business and will represent gearing of circa 21% on Main Event total assets. In the longer term, it is the intention of the group to maintain a low level of debt in the Main Event business which will provide some natural balance sheet foreign currency hedging."

Shaw (pictured) also noted, "the completion of this facility and asset sales underway are expected to see Australian net debt levels fall to approximately $230 million by September 2009."

Speaking to Australasian Leisure Management, Greg Shaw went on to explain that the Group "enjoys a lower level of debt than many property trust adding that âto to recycle capital into new sites we have been selling freeholds of a number of AMF bowling centres."

In relation to the development of AMF bowling centres and Goodlife Health Clubs, Shaw added "over the last year we have opened a number of new sites and will be sure to develop the right sites in the future."