Correspondence
Back to Correspondence[copy typed from PDF of letter received from Ebos Group Limited]
EBOS GROUP LIMITED
Head Office: 108 Wrights Road,
P O Box 411, Christchurch, New Zealand
18 June 2009
The Chairman
New Zealand Shareholders Association Inc
C/- P O Box 6310
AUCKLAND
Dear Mr Sheppard
Thank you for your letter of 27 May 2009 for the attention of our Chairman, Mr Rick Christie, which is acknowledged and has been referred to the writer to respond.
We advise there are three key financial ratios contained in our Bank Facility Agreement.
- Interest coverage ratio EBITDAF to Interest Expense.
- Senior leverage ratio of Senior Debt to EBITDAF.
- Shareholder Funds to be maintained above a given number.
As at 30 June and 31 December 2008 the latest reporting dates, the Company comfortably complied, and remains compliant with the ratio requirements set out in our Facility Agreement.
There are two secondary requirements based around the proportion that the Guaranteeing Group constitute of the Consolidated Group’s Total Tangible Assets and EBITDAF. The Company has no difficulty in complying with these particular ratio requirements.
Intangible assets and goodwill are excluded from EBOS’s bank covenants calculations.
The Board of EBOS Group Limited is fully cognisant of it’s responsibilities under the NZSX Listing Rules to keep the market fully informed of any material information.
Yours faithfully
EBOS GROUP LIMITED
Dennis Doherty
Chief Financial Officer