By Andrew Starke
Australian Vintage (AVL) has had its debt facility extended for a further two years with NAB formally agreeing to an August 2011 cut-off date.
AVL is subject to various covenants including the requirement to repay debt in the event of equity raisings or the disposal of assets in certain circumstances.
In addition, AVL is able to declare a dividend provided this is underwritten or approved by NAB.
“The execution of formal documentation in relation to extending our banking facilities will provide further resources to continue to grow exports and drive branded wine sales,” AVL’s CEO, Dane Hudson, said.
AVL is presently awaiting a verdict from the Australian Competition and Consumer Commission (ACCC) on its proposed merger with Constellation Brands.
Both companies have given notice to the Australian Securities Exchange (ASX) that the new wine joint venture would be equally owned by Constellation Brands and Australian Vintage shareholders.