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COPYRIGHT 2006 PR Newswire Association LLC
PERTH, Australia, June 30 /PRNewswire-FirstCall/ -- Orbital Corporation Limited (BULLETIN BOARD: OBTLY) today announced that Synerject LLC, its 50:50 joint venture with Siemens VDO Automotive Corporation (Siemens), has established new financing arrangements with the SunTrust Banks Inc (USA). This will provide replacement for existing funding arrangements which mature on 30 September 2006 and support the future working capital needs of Synerject. The package consists of an US$8 million term loan to be amortized over 4 years and US$3 million line of credit to be drawn as and when required. There are no parent company guarantees provided to SunTrust Bank.
In conjunction with the banking arrangements, Orbital and Siemen's have agreed to each contribute US$2 million additional share capital, with Orbital providing its capital contribution out of cash reserves. This will result in Synerject's equity increasing to approximately US$12 million by 30 June 2006 and Synerject's debt...
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