WKS
16/04/2013 15:04
GENERAL
REL: 1504 HRS Works Finance (NZ) Limited
GENERAL: WKS: Downer A$ Syndicated Credit Facility Refinancing
Media/ASX and NZX Release
16 April 2013
DOWNER A$ SYNDICATED CREDIT FACILITY REFINANCING
Downer EDI Limited (Downer) announced today it had successfully completed the
refinancing of its A$ Syndicated Credit Facility.
The new facility, totalling A$400 million, has a maturity of four years with
options to extend for a further two one year periods and will replace the
existing A$420 million Syndicated Credit Facility which was split into two
tranches: a 3-year, A$294 million tranche and a 4-year, A$126 million
tranche, due to mature in November 2013 and November 2014, respectively.
The new facility is a syndicated senior unsecured revolving credit facility
and will be used for general corporate and working capital purposes.
The transaction, initially launched at A$350 million, was oversubscribed by
A$100 million before being scaled back to A$400 million. The Chief Financial
Officer of Downer, Kevin Fletcher, said the successful refinancing reflected
positively on the strength of Downer's business.
"We received very strong support from both domestic and international banks
and new lenders to the Group, reflecting the substantial progress we have
made in transforming the business and rebuilding the balance sheet," Mr
Fletcher said.
"This transaction represents a 20 per cent reduction in funding costs on a
drawn basis and 30 per cent on an undrawn basis over the previous Syndicated
Credit Facility and will extend the company's weighted average debt duration
. It will underpin the Group's funding base over the next few years."
Mr Fletcher said the transaction was documented through the execution of a
common terms deed, as Downer used this refinancing as an opportunity to
modernise its credit platform. The business will now be progressively
migrated onto a new set of terms and conditions reflecting Downer's
investment-grade credit standing.
The transaction was jointly arranged by Australia and New Zealand Banking
Group, Mizuho Corporate Bank, National Australia Bank and The Royal Bank of
Scotland.
For further information please contact:
Michael Sharp, Group Head of Corporate Affairs and Investor Relations +61
439 470145
Luke Thrum, Manager Investor Relations +61 459 828720
Downer EDI Limited (www.downergroup.com) provides comprehensive engineering
and infrastructure management services to the public and private Minerals &
Metals, Oil & Gas, Power, Transport Infrastructure, Telecommunications, Water
and Property sectors across Australia, New Zealand and the Asia Pacific
region.
End CA:00235255 For:WKS Type:GENERAL Time:2013-04-16 15:04:05
