19th Nov 2013 09:56
LONDON (Alliance News) - Alpha Pyrenees Trust Limited Tuesday said it has received a EUR25.0 million loan from Barclays Bank PLC in order to finance its outstanding hedge liability.
The trust has been working with Barclays to settle currency hedges taken out prior to the financial crisis of 2008. The agreement will finance the outstanding hedge liability through to February 10, 2015.
Barclays has been provided with a charge over Alpha Pyrenees' Nimes property.
"A cash pooling arrangement over the company's cash-flows from the whole property portfolio has been established to provide further security to the loan but which provides the Company with working capital for its operations. No arrangement fees have been incurred," Alpha Pyrenees said in a statement.
According to Alpha Pyrenees' August half-yearly report, the trust hedged EUR163.1 million under derivatives contracts between 2006 and 2007, with the fair value of the currency hedges on June 30, 2013, recognised as a liability of approximately EUR36.0 million, or EUR25.5 million net of collateral.
Alpha Pyrenees shares were Tuesday quoted at 7.69 pence, down 0.71%.
By Samuel Agini; [email protected]; @samuelagini
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