Australian shipbuilder Austal Limited has executed a conditional, three year financing agreement said to be worth around AUD 232 million with a syndicate of four banks from Australia and U.S.
It is expected that all of the conditions precedent will be met in the coming weeks resulting in an effective date for the new agreement in November 2015.
Austal CEO Andrew Bellamy said that the financing agreement followed a competitive tender process which was narrowed down to four banks.
“It is pleasing that we have achieved this agreement with a high quality syndicate of two major Australian and two major U.S. banks with significant U.S. Defense contracting experience in good time, and we look forward to a smooth transition to the new facility agreement next month,” Bellamy said.
The financing agreement is on more favourable and flexible terms than Austal’s existing facility, according to a statement from the company.