betcorp announces payment of dividend !!

  1. 192 Posts.
    12 September 2003
    The Manager – Company Announcements
    Australian Stock Exchange Limited
    Exchange Centre
    Level 6
    20 Bridge Street
    Sydney NSW 2000
    Dear Sir
    Betcorp Limited announces the redemption of US$15 million of
    Convertible Redeemable Notes
    Betcorp Limited (“Betcorp” or “Company”) today announced the early redemption of US$15
    million in redeemable convertible notes (“Notes”), plus accrued interest, held by the vendor of the
    World Wide TeleSports (“WWTS”) business, WWTS Inc.
    The Notes, which accrued interest at the rate of 8% per annum, were used to partially finance the
    purchase of WWTS from WWTS Inc. in January 2003. Following the redemption on 11 September
    2003, there is a balance of US$2.2 million in redeemable convertible notes outstanding.
    The redemption proceeds were funded by a combination of new equity raised by Betcorp in July
    2003 (approximately A$20 million net of costs) and an advance provided by the National Australia
    Bank of US$3.2 million.
    The Betcorp Board decided to redeem the Notes early to improve cash flow management and
    provide Betcorp with complete access to the cash flow generated by the WWTS business and its
    cash balances. Importantly, the redemption will allow the Company to optimally manage its
    businesses and to put in place strategic initiatives to the benefit of the entire group.
    The Company intends to redeem the balance of the notes (US$2.2 million) as soon as possible
    utilizing available cash reserves held within the WWTS business. The remaining notes are
    redeemable at any time until 23 January 2005 at the option of Betcorp.

    Dividend Policy
    The Betcorp Board has previously advised an intention not to pay dividends in 2003 consistent with
    restrictions placed on the Company under the terms of the Notes. The Company now anticipates
    declaring a dividend based on the full year results to 31 December 2003 once all outstanding notes
    have been redeemed.
    Yours faithfully
    Richard Barker
    Chief Executive Officer
 
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