Shares in Rams Home Loans Group (RHG) rose as much as 8.3% to 32.5 cents on Friday after the company said its $750 million warehouse facilities due to mature on 31 December 2007 had been extended.
A $500 million warehouse facility had been extended to 2 May 2008 and a second $250 million facility to 31 January 2008, with the same financial institution.
RAMS had previously announced that it had received $4.25 billion of preliminary credit approvals for facilities to refinance its extendible commercial paper facilities.
It said that on 27 December 2007 the documentation for two of these facilities was executed.
RAMS was badly wounded by the subprime mess in 2007.
After listing on the Australian Stock Exchange in July 2007 at $2.50 per share, the stock hit a low of 20 cents in December 2007.
The brand and franchise operations in the troubled mortgage business were acquired by Westpac for $140 million in October 2007, with the bank careful to distance itself from the RAMS' existing mortgage book.
Westpac has commenced funding of up to $500 million of loan settlements from 15 November 2007.
Shares in RHG traded at 31 cents at 11.45am AEST.
