To: jeevacationagmail.com[jeeyacation@gmail.com]; Jeffrey Epsteinbeevacation©gmail.com]
From: Sultan Bin Sulayem
Sent Tue 3/27/2012 8:39:20 PM
Subject: Fwd: DP World decides to pay back $3-b debt
DP World decides to pay back $3-b debt
Monday, 26 March, 2012Written by AP
1
By Adam Schreck
DUBAI, United Arab Emirates — DP World, the Dubai government-controlled port
operator, said Monday it will reach into its cash reserves to pay back $3 billion half
a year before the debt comes due.
The move will shrink the company's debt load by nearly 40 percent while still leaving it
with more than $1 billion in cash on hand, according to company figures.
DP World's ability to borrow billions to fund an aggressive overseas expansion helped it
become the world's third-largest port operator. It is part of Dubai's troubled
Dubai World conglomerate, but was excluded from its parent's highly publicized
debt restructuring.
The cargo handler plans to pay off the $3-billion balance it has outstanding on its
revolving credit facility using cash it has on hand in early April. The debt is due in
October.
It said it will still have $1.2 billion in cash reserves afterward.
"We have created a balance sheet that allows DP World to meet the long-term strategic
requirements for investment into profitable growth opportunities, [while]
maintaining a very disciplined approach to capital allocation," said Sultan Ahmed
Bin Sulayem, the company's chairman.
DP World will continue to carry about $4.7 billion in debt once it pays off the revolving
facility, a standing line of credit that companies use to access cash quickly.
It is in talks with lenders to finalize the terms of a new five-year revolving facility of $1
billion, but says it has no immediate need to tap that line of credit.
The new facility may pay a margin of 225 basis points, or 2.25 percentage points,
above the London interbank offered rate, two bankers familiar with the matter
said, declining to be identified because the information is private. Each bank may
contribute about $75 million, one of them said. With Bloomberg
(Published in the Manila Standard Today newspaper on /2012/March/27
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