AMP Capital refinances Royal North Shore Hospital

16 September 2019 - 12:00 am UTC

AMP Capital has refinanced about AUD 930m (USD 640m) of bank debt on the Royal North Shore Hospital PPP in Sydney, it was announced today.


The deal, which reached financial close on 5 September, is the first refinancing of debt since this was recapitalised when AMP Capital and its Community Infrastructure Fund (CommIF) bought the PPP concession from RBS in February 2015 for about AUD 1.2bn.


Debt raised then was AUD 1.04bn due to expire in February 2020, according to Inframation Deals.


The latest deal added two banks – Norinchukin Australia and Sumitomo Mitsui Trust Bank – to its previous bank group of ANZ bank, MUFG bank, Natixis and Westpac, according to data from Inframation deals. 


The refinancing was a term loan split into three tranches of four, five and 17 years. The last tranche will mature at the end of the PPP concession in 2036.


The pricing of the new loans was said to be competitive when compared to CommIF’s refinancing assumptions and this allowed it to increase the maturity profile of its debt, a source familiar said.


As well as the original debt coming due soon, the decision to refinance now was also based on the fact the PPP was now in a ‘steady state’ operations phase which allowed AMP Capital to take advantage of the favourable debt markets.


RBS’ Royal Bank Project Investments reached financial close on the 28-year PPP in October 2008, which involved about AUD 930m in upgrades to the existing hospital.


AMP Capital was largely self advised by its debt advisory team, but Boon & Associates conducted modelling for them, King & Wood Mallesons was legal adviser for AMP Capital, Ashurst was the lenders’ counsel, Deloitte did tax and accounting and KPMG was the model auditor.


A spokesperson for AMP Capital declined to comment further.


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