Downer EDI has completed a partial extension of the company’s $400 million syndicated debt facility.
The move reduces the company’s future refinancing risks.
The facility previously had a maturity date of April 2019, however this has now been restructured into two tranches, with the first $200 million tranche continuing to mature in April 2019, whilst the second tranche of $200 million will now mature in April 2021.
Pricing for the first tranche remains unchanged, while the second tranche has been readjusted to reflect the longer dated term.
According to Downer all existing syndicate banks participated in the extension transaction.
The confirmation of the restructure was welcomed by Downer CFO Michael Ferguson.
“Downer appreciates the continued support it receives from its relationship banks,” Ferguson said.
“This transaction extends the company’s weighted average debt and duration, and reduces refinancing risk.”
The company has retained its BBB stable rating from Fitch.