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18/5/2018 — General
Downer restructures financing

Downer EDI Limited (ASX & NZX: DOW) said it had successfully completed a total refinancing of $A1.3 billion ($NZ1.42 B) comprising a $A400 million syndicated debt facility for Downer and a $A900 M syndicated debt facility for Spotless Group Holdings Limited (ASX: SPO).

These arrangements relate to Downer’s takeover bid for industrial cleaning and catering group Spotless, which saw it become controlling shareholder.

The Downer $A400 M facility is a committed revolving facility comprised of a $A200 M four-year tranche and a $A200 M five-year tranche.

The Spotless $A900 M facility is also a committed revolving facility, with $A420 M maturing in three years and $A480 M maturing in four years.

Syndication of the debt facilities was launched in March and received strong support from a range of domestic and international financiers, comprising existing and new lenders, with both facilities significantly oversubscribed.

Chief financial officer of Downer, Michael Ferguson, said the refinancing has achieved its key objectives of extending the maturity profile of the group’s borrowings, particularly Spotless, adding to the diversity of the group’s lenders and providing an overall reduction in borrowing costs.

Ferguson said.this refinancing will increase maturity of Downer’s debt from 2.8 years to 3.6 years and Spotless’ debt from 1.7 years to 3.3 years.

He said Downer’s credit strength and majority equity interest in Spotless were pivotal to the successful refinancing of the Spotless debt.

The facilities were jointly arranged by Australia and New Zealand Banking Group Ltd, BNP Paribas, Commonwealth Bank of Australia, Hongkong and Shanghai Banking Corporation Ltd, Mizuho Bank Ltd and MUFG Bank Ltd.

PDF File Downer Media Release (28.6 kilobytes)
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