Downer to raise funds via note issue

Downer EDI has announced a new $250 million issue of medium term notes.

The issue is for seven year fixed rate senior unsecured notes.

Despite the issue being oversubscribed it was capped at $250 million, at a pricing margin of 205 basis points over swap, which resulted in a fixed rate yield to maturity of 4.6825 per cent per annum.

The slated maturity date is March 2022.

Downer stated that the proceeds from the issue will be used to refinance its existing bridge loan facility the firm entered into for the acquisition of Tenix Holdings in October last year.

NAB and Westpac have acted as joint lead managers to the transaction. 

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