Barminco completes US$485m debt refinancing

Perth-based mining contractor Barminco has refinanced its existing debts through an issue of high-yield notes in the United States.

The company announced today an offering of $US485 million of senior notes, with an interest rate of 9 per cent.

In addition it has negotiated a $A100 million revolving credit facility.

The company has needed to refinance its debts, after it withdrew from a $600 million initial public offering in 2011.

It said the senior note offering was oversubscribed due to recent falls in the Australian dollar.

"The note facility will provide Barminco with a simplified, long-term debt structure and replace Barminco's existing secured senior bank syndicate, subordinated debt and mezzanine facilities," the company said in a statement.

Its existing debt facilities totalled about $US450 million at its last balance date, June 30 2012.

The notes will mature in 2018 and bear a coupon of 9 per cent per annum.

By comparison, mining services company Ausdrill completed a debt issue in the US market earlier this year with an annual interest rate of 6.875 per cent, while shale gas producer Aurora Oil & Gas issued $US300 million of notes with an interest rate of 7.5 per cent pa.

The joint managers for the Barminco offering were JP Morgan, Goldman Sachs and HSBC.