Downer refinances $1 billion of syndicated sustainability linked loans
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The news: Infrastructure group Downer EDI has completed refinancing $1 billion of its $1.3 billion syndicated sustainability-linked loan facility.
The numbers: The facility consists of four tranches with different maturities and was resized from $1.4 billion to $1.3 billion as part of the process. Three of the four tranches were refinanced.
The $300 million tranche was extended to June 2029, the $400 million tranche was extended to June 2030 and the $300 million Asian term loan was extended to June 2032.
The context: Some of the proceeds will be used to repay the US Private Placement of $182 million that matures on 8 July 2025.
Downer has also put in place a $400 million bridge facility “to provide flexibility for refinancing” a $500 million Australian Medium Term Note maturing on 29 April 2026, according to a statement to the exchange.
The transaction was jointly arranged by the mandated lead arrangers and bookrunners Australia and New Zealand Banking Group, Commonwealth Bank, HSBC and Simotomo Mitsui Banking Corporation. Commonwealth Bank and HSBC are acting as sustainability co-ordinators.
What they said: “The successful refinancing is another important milestone for Downer with our improved operating performance and strong financial position supporting the achievement of improved terms,” Downer chief financial officer Malcolm Ashcroft said.
“The refinancing also positively lengthens our average debt maturity profile to approximately 3.4 years.”
The source: ASX
