Engineering group Downer EDI has earnt a breather by extending the maturity of part of a $400 million syndicated debt facility.
Downer says its syndicate banks have allowed a restructure of the loan so that a $200 million tranche will now mature in April 2021, instead of April 2019. The remainder remains due on the original date.
"This transaction extends the company's weighted average debt duration and reduces refinancing risk," acting chief financial officer Michael Ferguson said.
Downer's main mining division has suffered a sharp drop in revenue in the past 18 months, hit by contract completions and volume reductions amid falling commodity prices.
In February, the company trimmed its full-year profit guidance and posted a 24 per cent drop in first-half profit.
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