Aus & NZ: US private placement considered for Peninsula Link PPP refinance

17 August 2018 - 12:00 am UTC

The Southern Way consortium is understood to be looking at both a US Private Placement as well as bank debt for its AUD 750m (USD 544m) refinancing of the Peninsula Link PPP.

The PPP still has 17 years to go on a 25-year concession from the Victorian government. The project reached financial close in February 2010.

Several debt market and lender sources said a private placement is being weighed up alongside bank debt.

While it makes sense to consider matching the concession with long-term debt as interest rates begin to rise, bank sources say the loan market is highly competitive in Australia at the moment and some may be willing to lend for longer periods.

The consortium – consisting of Commonwealth Bank Group Super, Prime Super and State Super SAS Trustee Corp – is managed by AMP Capital and Whitehelm Capital.

The debt for the motorway was last refinanced in 2014 for a term of just over five years. Banks involved then were ANZ, Commonwealth Bank, MUFG Bank, NAB, SMBC and Westpac, according to Inframation Deals.

Plenary Group took over as SPV manager for the PPP in 2016.

The 27km, four-lane road runs south from the Frankston Freeway-EastLink Interchange on the southern outskirts of Melbourne.

Peninsula Link