What is Galleons debt? What is Galleons credit facility?
As at November 2010, Galleon’s net debt totaled $1.4 million. The Company’s strategy is to maintain net debt to funds from operations at or below a level of 1.5 to 1. While Galleon may exceed this rate from time to time, variations are viewed as short term, and efforts are made after a period of variation to bring the measure back in line. Galleon has $250 million in credit facilities available consisting of a $225 million extendible 364 day revolving term facility and a $25 million non-revolving facility. The $25 million facility is available subject to mutual approval of the banking syndicate and Galleon, including repayment terms. Collateral for the facilities consists of a demand debenture for $500 million collateralized by a first floating charge over all of the property and equipment of Galleon. At September 30, 2010, an amount of $122.3 million was drawn against the credit facilities (December 31, 2009 – $217.2 million).
