The syndicate of 25 banks lending to Australian infrastructure and real estate specialist Babcock & Brown has agreed to a new A$2.8bn (â¬1.7bn) financing facility, after a slump in the group's share price triggered a review clause. The group also confirmed it will hire international investment banks to advise the company on strategy.
The banking syndicate includes Bank of Scotland, part of the HBOS Group, which is acting as agent on the lending facility, and the four major Australian banks. After two weeks of negotiations they have agreed to discontinue the requirement for Babcock & Brown's market capitalisation to remain above A$2.5bn, after shares slumped 27% to a low of A$4.70 on June 13, leaving the group with a market value of A$2.3bn.
