TPI
01/07/2014 16:53
GENERAL
REL: 1653 HRS Transpacific Industries Group Ltd
GENERAL: TPI: Transpacific Refinancing
01 July 2014
TRANSPACIFIC FINALISES DEBT REFINANCING
Transpacific Industries Group Ltd. (ASX:TPI) today announced that, following
the successful sale of its New Zealand business, the Company has finalised
its refinancing with a new $400 million syndicated debt facility. The new
debt facility has been provided by 8 banks (previously 15).
The refinancing was significantly over-subscribed by both domestic and
offshore lenders.
As part of this refinancing, the Company has:
1. Improved the pricing of the facility reflecting TPI's enhanced credit
profile;
2. Increased the forecast weighted average debt maturity at 30 June 2014 from
1.9 years to 4.3 years; and
3. Reduced the overall size of TPI's syndicated debt facility from $1.199
billion to $400 million.
Sale of the New Zealand business and completion of the refinancing will allow
TPI the opportunity to redeem the Step-up Preference Securities (ASX:TPAPA)
as at 30 September 2014 with payment due in October 2014. The Company will
also consider the resumption of dividends in the near term.
Commenting on the refinancing, Stewart Cummins, Chief Financial Officer of
TPI said: "We are pleased with the strong support shown by members of our
bank syndicate and the confidence they have in the future direction and
strategy of the Company. With the reduction in debt level and improved
pricing, we anticipate that our FY15 cash interest costs will be $15-18
million."
A one-off pre-tax charge of approximately $18 million will be recognised in
the FY14 accounts relating to the unamortised syndicate establishment costs
incurred in October 2011.
END
Investor and Media Relations:
Frank Sufferini
Group Investor Relations Manager
Telephone: 0416 241 501
End CA:00252313 For:TPI Type:GENERAL Time:2014-07-01 16:53:19