TeamTalk completes refinancing and updates market

Media release

For immediate release

30 June 2015

TeamTalk completes refinancing and updates market

NZX-listed telco TeamTalk Limited is pleased to announce that it has successfully completed its bank refinancing with Westpac.

The existing facility has been extended until 31 December 2018 on broadly the same terms and conditions, although we elected to reduce the total facility size to $40 million. Reflecting lower current debt levels this facility still provides sufficient headroom and flexibility to pursue targeted investment in infrastructure expansion.

With the period all but over, we are able to reiterate our expectations that EBITDA[1] for the second half of the year will be a bit ahead of the $6 million earned in the first half of the year. Shareholders should note however, that bottom line reported NSAT[2] will, as a result of wholesale interest rates falling significantly over the period, be negatively impacted by a non-cash charge relating to the market revaluation of our fixed interest rate swap portfolio.

Full year results will be released to NZX on August 26.

TeamTalk also announces that effective today, it is amalgamating with its wholly-owned subsidiary company Araneo Limited.

This amalgamation, which will see all of Araneo’s business operations absorbed into that of the parent company, is aimed at simplifying the group’s structure and improving operational effectiveness.

“It’s great to get the refinancing and the amalgamation with Araneo completed. We continue to make solid progress aligning our group operations to meet the needs of modern customer demands,” says TeamTalk Managing Director David Ware.

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1 EBITDA = Earnings Before Interest, Tax, Depreciation & Amortisation

2 NSAT = Net Surplus after Tax

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