Downer EDI has entered into a new $500m syndicated loan agreement with four of its long-term banks .
The deal has maturity date of July 2022 and the new facility will refinance Downer’s $200m syndicated bank loan maturing in April 2021 and provide additional liquidity of $300 million.
In addition, the company has reached an agreement with its lenders to extend the maturity date of $130 million of debt due to be paid in the next 12 months to the 2022 and 2023 financial years.
As a result, Downer now has no debt maturing in the 2020 financial year or in the first half of the 2021 financial year. Debt maturing in the second half of the 2021 financial year is now less than $200 million, or just 6% of Downer’s total debt portfolio.
Downer chief financial officer Michael Ferguson says the new financing reduced the company’s short term debt maturities and provided additional liquidity.
“Downer appreciates the support from its long term relationship banks in providing the new facility.
“It will further bolster the Group’s strong liquidity position and enhance the financial strength and flexibility of the Downer Group,” he says.
At December 31, 2019, Downer reported cash of $515 million and committed undrawn facilities of $1.14 billion. Downer Group is rated BBB (Stable) by Fitch Ratings.
Downer is dual-listed on the NZX and ASX and provides transport and infrastructure, mining, energy and industrial services.
The company employs around 56,000 people across more than 300 sites, primarily in Australia and New Zealand, but also in the Asia-Pacific region, South America and Southern Africa.
