REA Group Ltd Annual Report 2021

Annual Report 2021 | REA Group Ltd 9. Financial risk management (continued) (c) Borrowings Facility 1 Interest rate Maturity 2021 $’000 2020 $’000 Unsecured bridge facility 2 BBSY +0.80% 3 July 2022 413,745 – Unsecured syndicated revolving loan facility 4 Sub Facility A BBSY +0.85% - 1.45% December 2021 – 170,000 Sub Facility B BBSY +2.00% - 2.75% December 2021 – – Unsecured NAB revolving loan facility 5 BBSY +0.85% - 1.40% April 2021 – 70,000 Unsecured NAB overdraft facility 6 NAB benchmark rate - 4.22% On demand – – 1 The carrying value of the debt approximates fair value. 2 Bridge facility with National Australia Bank. The undrawn amount at 30 June 2021 was $106.25 million. 3 Interest rate margin is set at 0.8% to 31 December 2021, 1.1% between 1 January 2022 and March 2022 and 1.4% between 1 April 2022 and the termination of the facility. 4 The loan facility was provided by a syndicate comprising Australia and New Zealand Bank, National Australia Bank and HSBC. The facility was repaid using the unsecured bridge facility on 8 June 2021. 5 Facility matured and was repaid on 27 April 2021. 6 Facility was closed on 9 June 2021. The facility was undrawn. (i) Unsecured bridge facility On 8 June 2021, the Group repaid the unsecured syndicated revolving facility using the funds from the $520 million unsecured bridge facility which matures in July 2022. The proceeds from the bridge facility were used to repay the $170.0 million of Sub Facility A in addition to providing finance for Group acquisitions. The total drawn amount at 30 June 2021 was $413.7 million. A total of $0.4 million in interest was paid for the year ended 30 June 2021 at a weighted average interest rate of 0.8%. Transaction costs of $0.6 million, which were incurred to establish the facility, have been capitalised on the Consolidated Statement of Financial Position, of which $0.5 million has not yet been amortised through the Consolidated Income Statement. The loan facility requires the Group to maintain a net leverage ratio of not more than 3.50 to 1.0 and an interest coverage ratio of not less than 3.0 to 1.0. As of 30 June 2021, the Group was in compliance with all applicable debt covenants. (ii) Unsecured syndicated revolving loan facility On 8 June 2021, the $170.0 million of Sub Facility A of the unsecured revolving loan facility was repaid using proceeds from the unsecured bridge facility. On 15 June 2021, the undrawn $148.5 million of Sub Facility B of the unsecured revolving loan facility was closed. The overall unsecured syndicated revolving loan facility was treated as an extinguishment and a loss of $0.4 million recognised in the Consolidated Income Statement. The interest rate margin was between 0.85% and 2.00% (2020: between 0.85% and 2.00%). $1.6 million in interest was paid for the year ended 30 June 2021 (2020: $3.7 million) at a weighted average interest rate of 0.49% (2020: 1.9%). The Group was in compliance with all applicable debt covenants up until the date of closure of the facility. (iii) Unsecured NAB revolving loan facility On 27 April 2021 the facility matured and was repaid by the Group. The facility was treated as an extinguishment and a gain of $0.1 million recognised in the Consolidated Income Statement. The interest rate margin was 0.85% (2020: 0.85%). $0.6 million in interest was paid for the year ended 30 June 2021 (2020: $1.2 million) at a weighted average interest rate of 0.95% (2020: 1.7%). Debt covenant requirements for the facility are consistent with those applied to the unsecured syndicated revolving loan facility. The Group was in compliance with all of the applicable debt covenants up until the date of closure of the facility. (iv) Unsecured NAB revolving loan facility On 9 June 2021, the Group closed the $20.0 million overdraft facility. The facility was undrawn up until the date of closure. The facility was treated as an extinguishment and a loss of $0.1 million recognised in the Consolidated Income Statement. Year in review Directors’ Report Financial Statements Remuneration Report Sustainability Our Leaders 87