A $1.8bn refinancing operation shows the Port of Melbourne is ready to grow, management says.
In a statement, a Port of Melbourne spokesperson confirmed refinancing the equivalent of A$1.8bn in the US Private Placement market across three tranches of 10, 12 and 15 years.
BondAdviser website describes the USPP as “a market for privately issued debts in the US”.
“The refinancing included A$335m of Australian dollar notes also across the three maturities,” the spokesperson said.
“The size of the bid book enabled us to upsize the transaction and ultimately refinance an entire bank debt tranche expiring in 2019. It is particularly pleasing that 36 investors participated in the program.”
The USPP market was said to have been selected based on its ability to tranche across multiple tenors in a single large transaction.
This decision was, according to management, vindicated by achieving a credit margin differential between 10 years and 15 years of 15 basis.
“This result sends a clear message to our customers that the Port of Melbourne is committed to investing to future proof and grow our business for the long term,” the spokesperson said.