Austal secures Export Finance-backed $488m credit facilities
Make us a preferred source
Make us a preferred source on Google
The news: Shipbuilder Austal has secured $488 million in credit facilities from Export Finance Australia and other tier one institutions, including Australian and international banks, as the final piece of its $1.2 billion capital expansion program in the US.
The numbers: The Export Finance Australia loan facility for Austal’s Final Assembly 2 project to expand its Alabama shipbuilding facility has been credit approved for up to USD150 million ($229.21 million).
Austal also negotiated $634 million of contingent instruments with several of the credit providers and other US-based tier one financial institutions to backstop Austal’s existing $136 million in Go Zone Bonds through letters of credit as well as commercial guarantees where required.
At 2:41pm AEST Austal shares had lifted 1.7% to $6.16.
The context: The new debt facilities, Austals’ $220 million capital raise in April 2025 and USD450 million in submarine Module Manufacturing Facility 3 project funding — also in Alabama — funding from General Dynamic Electric Boat will fund the capital expansion project and provide working capital.
The new debt facilities comprise bilateral agreements with each lender under common terms. This refinances Austal’s existing syndicated facilities, with a $280 million syndicated facility agreement to now be terminated.
What they said: “The company now has a stronger balance sheet with enhanced liquidity at a lower cost, longer tenor, and with superior flexibility to support this growth,” Austal chief executive Paddy Gregg said.
The source: ASX
