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COMMENTARY
SUBSEQUENT EVENTS
Subsequent to 6 March 2002, being the date of this report, the
following major transactions were entered into:
TRENSTAR ACQUISITION OF BEER KEG FLEET
TrenStar Inc entered into a transaction whereby a special purpose
company, 75% owned by TrenStar, acquired the entire beer keg fleet
of 1,9 million units of a major UK beer brewer for a consideration
of £60 million with effect from 24 April 2002. Funding for
this acquisition has been provided by a major UK bank against the
security of the keg fleet and the future income generated from it,
and without recourse to TrenStar or Trencor. This fleet will be
made available to and managed for the brewer by TrenStar subsidiaries
under a 15-year container services agreement at an availability/service
fee.
BANKING FACILITIES - DRAW DOWN UNDER
THE LETTER OF CREDIT ('LC')
Further to the report on Banking Facilities referred
to in the Directors'
Report and note
31 to the financial statements, Trencor elected, in terms of
the arrangements with its South African and foreign bankers, to
procure a draw down under the US dollar denominated LC provided
by its two foreign banks and, from the proceeds, repaid its financial
indebtedness to its South African banks in full.
An amount of $56 385 000 was drawn down under the LC facility on
9 May 2002. The amount drawn down is repayable in fourteen quarterly
instalments of $4 027 500 each commencing on 20 July 2002 with the
final instalment payable on 20 October 2005. The outstanding balance
bears interest at LIBOR plus 1,825% per annum; the current effective
interest rate payable on the loan in 3,6625% per annum.
The combined effects of the changing value of the rand against
the dollar and the current interest rate profiles in South Africa
and the US respectively made it beneficial for Trencor to have these
borrowings in US dollars.
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