Gold Coast-based MFS Diversified's financing restructure will be completed today, opening the door to future growth in 2008.

The company, which used short-term finance to help fund its Villa World takeover last year, has refinanced its existing debt facilities through BOS International over a five year term.

The new $450 million debt facility is combined with the $200 million equity raising the company completed earlier this year.

Managing Director Craig White said the acquisition of Villa World and the restructuring of the MFS Diversified Trust's investment portfolio had been largely financed by 'bridging facilities'.

"It has always been our intention to replace those temporary faciities and the other senior debt within the group with a single, flexible facility," he said.

"Having one financier will allow more flexibility to be able to grow and it is more effecient in that it will cost less.

"It give us headroom to make more transactions and acquire more stock, because as we sell stock we like to replace it."

Mr White said the company would look at the development stock and investments for the 2008 financial year.

In addition to paying out the existing facilities, the group has used proceeds from the restructuring to pay out $40 million in preferred equity units, further reducing the group's funding costs, he said.

He said the group had outperformed sales targets and were on schedule to meet the 2007 forecast.

Chief executive Brent Hailey said the sales were being driven by strong demand in the past few months.

"The higher-than-expected level of pre-sales will contribute to a strong start for the 2008 financial year," said Mr Hailey.

MFS Diversified last week revealed it was starting a new Victorian housing company Expression Homes, in joint venture with building contractor Orbit Homes.

The company's shares yesterday rose 1.5c to close at 91c.

Gold Coast Bulletin - page 19
Tuesday, June 5, 2007