The AUD 646m (USD 455.8m) refinancing of Peninsula Link PPP has been signed off, with a mixture of Asian and Australian debt lining up for one of the bigger refi deals of 2018.
As previously reported the new debt structure involves two tranches, including a 10-year tranche, marking a doubling of the existing tenor facility, advisors Plenary confirmed today in a statement.
A source familiar with the deal told Inframation all eight existing banks including all of the major ‘Big Four’ Australian banks (ANZ, CBA, NAB and Westpac) plus four internationals comprising Japanese and Chinese banks (Bank of Communications, MUFG, SMBC, and SMTB) backed the Southern Way consortium’s refi of its 27km Melbourne motorway. No other details on pricing or terms were available at the time of writing.
Southern Way consortium had originally been contemplating a US Private Placement on top of bank loans.
This extension of the debt tenor helped mitigate refinancing risk for the equity investors in the motorway, which includes State Super SAS Trustee Corp (41.13%), Commonwealth Super Group (34.17%) and Prime Super (24.6%). The equity holdings are managed by AMP Capital and Whitehelm Capital.
The debt for the motorway was last refinanced in 2014 for just over a five year term, according to InfraDeals..
The deal marked Plenary’s first external financial advisory mandate, as it seeks more work in the refi advisory space. Plenary took over took over as SPV manager for the Peninsula Link PPP in November 2016.
“The highly-competitive pricing and tenor we achieved mitigates refinancing risk for the project and reflects the strength of our relationships in financial markets, our structuring capability, and our deep understanding of PPPs,” said Plenary Head of Origination Paul Crowe said.
The concession on the 27km, four-lane road on Melbourne’s southern outskirts runs until 2035.