The new term financing facility contains no market price based covenants, no margin call obligations and no obligations to post additional collateral based on the prevailing market price of securities in our Managed Funds.

The company said whilst it anticipated an increase in its corporate banking facilities, overall gearing would reduce as a consequence of increased retained earnings and the $250 million repayment of short term ''margin'' facilities.

Phil Green, CEO of Babcock & Brown said, ""Today''s announcement removes all short term debt secured against marketable securities in Babcock & Brown managed funds and reconfirms our statement on Friday that we have no intention or requirement to dispose of any interest in our managed funds.”

""This announcement further demonstrates that we continue to have multiple funding sources and in particular we have a large number of strong banking relationships which provide us with flexible funding solutions to support our business.

The company said that it expects to earn $750 million in 2008, 15% rise compared to 2007.

The company also announced a joint initiative with a leading distribution house for closed funds and structured products in Germany, HCI Capital AG, to acquire its first aircraft leasing investment with the purchase of two Boeing 777-200LR aircraft delivered to Air Canada in February 2008.

The aircraft have been leased back to Air Canada under long-term operating leases. Norddeutsche Landesbank Girozentrale provided the long-term and equity bridge loan financing for the transactions. Babcock & Brown Aircraft Management would serve as the aircraft fund''s asset manager and re-marketing agent.

Meanwhile Babcock & Brown also revealed that in conjunction with completion of the documentation of the new term finance facility announced this morning, it would issue approximately 14.28 million options over Babcock & Brown securities with a strike price of $23 and an expiry date of 31 July 2010.

Its share shed 1.2% at the close of trade.

Tango and Shenzhen Zhongjin Lingnan lodges $2.50 per share bid for Herald Resource Limited

The Special Purpose Vehicle owned by PT Antam Tbk, Tango Mining Pte Ltd and Shenzhen Zhongjin Lingnan, formed for the takeover of Herald Resources Limited, today lodged its Bidder''s Statement for its cash offer of $2.50 per Share.

Tango notes that the Herald Board has recommended that Herald shareholders accept the Tango Offer of $2.50 per share in the absence of a superior proposal. Tango also notes the Herald Board has withdrawn its previous recommendation to accept the lower offer of $2.25 per share of Calipso Investment Pte Ltd.

The Tango offer price of $2.50 cash for each Herald share represents a substantial premium to the historical trading levels of Herald shares, prior to recent corporate interest in the company.
The Tango Offer also provides Herald shareholders with an attractive opportunity to realise cash value for their investment in Herald.

Tango was prepared to offer Herald shareholders superior value because an acquisition of Herald and the Dairi Project meets the strategic needs of Antam, a large and diversified Indonesian metals and mining company, and Zhongjin, which owns zinc and lead smelters and mining operations in China.

In a separate statement the Herald board strongly advised Herald shareholders to withhold their acceptance until near the end of the Tango offer period, the closing date of which Tango will advise. Shareholders should note that once they accept the Tango offer, they might forgo the opportunity to accept a subsequent superior proposal.

The Tango Offer is subject to a number of conditions, including 50.1% minimum acceptance, Foreign Investment Review Board approval, Antam shareholder approval on 18th April 2008 while the Zhongjin shareholder meeting is expected to be held in late March 2008.

AED share rises 19.5%

Shares in Australian oil explorer drilling in the Timor Sea, AED Oil Limited rose the most in three weeks after it sold 60% of its largest field to a unit of China Petrochemical Corp or Sinopec Group.

Sinopec International Petroleum Exploration & Production Corp would pay $600 million for the stake in the Puffin and Talbot oil ventures. Lower-than expected output from Puffin prompted a 76% plunge in AED shares over six months before they were halted Feb. 27.

AED spent more than $160 million on the first phase of Puffin, which started production in October. Sinopec International Exploration will take over as operator of the venture as part of the transaction, which values AED''s assets at about $1 billion.