Macmahon secures massive new funding facility

Macmahon has secured a new three year funding facility, upsizing it after the initial facility was oversubscribed.

The new $317.5 million facility, which due to overwhelming interest was increased from the initial figure of $280 million, will be used to increase stability and certainty of future funding for predicted growth and continued operation.

The Commonwealth Bank and HSBC will act as mandated lead arrangers and book runners of the facility, which will be comprised of three tranches.

However the terms of the deal were not disclosed.

Speaking on the new facility, Macmahon CFO Sybrandt van Dyk stated:"This facility refinances the company's existing term debt and guarantees, and will also be used to fund the purchase of new and used equipment, general corporate purposes, and working capital needs."

He went on to add that this latest facility has also seen the company broaden its banking relationships through the incorporation of a number of new financiers.

"In addition to our existing lenders, we are pleased to have the support of several new financiers in the syndication, namely Hua Nan Commerical Bank, Taiwan Cooperative Bank, Mega ICBC, and Macquarie Bank," van Dyk said.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.