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APA Group Successfully Completes A$300 Million Bi-Lateral Term Loan Facility
Published on
30 September 2024
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Leading Australian energy infrastructure business, APA Group (ASX:APA), today announces it has successfully arranged A$300 million of senior unsecured debt via a bi-lateral term loan facility with a 10-year tenor fixed at 160bps over base rates.1 APA expects to draw down the facility in the next six months, at which time the total all- in cost of debt will be fixed for the remaining term of the debt.

This completes ~A$2.2 billion of financing in the past month at an average tenor of 13.4 years. The average fixed cost of debt across the US 144A/ Reg S funding as announced on 11 September and this A$300m bi-lateral,2 is approximately 6.44% on an annualised basis.

The proceeds of the ~A$2.2 billion will be used for the refinancing of APA’s near-term debt maturities of ~A$1.75 billion and to fund growth capital expenditure.

Post draw down of the bi-lateral facility, the average cost of debt across APA’s entire debt portfolio is expected to be approximately 5.23%2 on an annualised basis.

“We are delighted to continue to successfully manage our funding requirements with longer tenor debt at attractive pricing levels,” APA Group Chief Financial Officer Garrick Rollason said.

“This completes our refinancing requirements until our next debt maturity in March 2027.”

1 Based on 10-year rates, if APA were to draw down and hedge into fixed rates on 27 September 2024, the rate would be ~5.80% (excluding upfront fees).

2 Assuming that the rates under the bi-lateral facility were set based on the 10-year rates as at 27 September 2024.