ASX-listed property company Goodman Group has negotiated a new debt facility that will enable it to meet all of its debt obligations this year.
The group has signed a contract with Macquarie Bank for a $300 million debt facility, which has to be repaid in nine months.
"The new facility addresses the group's immediate debt refinancing and enables Goodman and its advisers to execute a range of further capital management initiatives to ensure the group is well capitalised for the long term," Goodman chief executive Greg Goodman said yesterday.
"Our key focus remains the de-leveraging of the business," he said.
Listed property trusts have seen a sharp decline in stock prices over the course of the financial crisis as concerns over high levels of debt caused investors to price the stocks at default rates.
Goodman has not been spared from the onslaught that started at the end of 2007. At the beginning of October 2007 the company stood at $6.70, while yesterday it traded at around 25 cents.
The announcement of the new facility yesterday failed to impress investors, who sent the stock more than 17 per cent lower.
