Australia: Leighton Secures AUD 1 Bln Syndicated Cash Advance Facility

Leighton said it has successfully completed the refinancing of a A$600 million Syndicated Cash Advance Facility which was launched in late April. Strong support was received from a consortium of Australian and international banks with total subscriptions of over A$1 billion.

The transaction was launched at A$700 million, and the company has decided to take over subscriptions of A$300 million bringing total commitments to A$1 billion. The proceeds will be used for working capital and general corporate purposes.

The new three year Facility was priced at a lower margin than the existing A$600 million Syndicated Cash Advance Facility due to mature in December 2013.

Deputy Chief Executive Officer and Chief Financial Officer, Mr Peter Gregg, said that he was pleased with the support from the banks for the refinancing.

“This refinancing forms an integral part of our capital management program. We are diversifying and extending our funding sources, strengthening our balance sheet and effectively managing our capital to ensure we can grow from our existing financial base. Our focus is on driving working capital and capital expenditure improvements, and recycling capital from non-core assets,” Mr Gregg said.

The syndication targeted a diverse range of banks in the Australian and Asia-Pacific loan market. Nineteen banks provided commitments to the Facility, nine of which are new lenders to the Facility.

Australia and New Zealand Banking Group Limited, Mizuho Corporate Bank, Ltd., Sydney Branch and National Australia Bank Limited were the appointed Mandated Lead Arrangers and Bookrunners. Financial close of the Facility will be completed in late June 2013.