10/09/2014 - 12:23

Macmahon lines up $317.5m in debt finance

10/09/2014 - 12:23

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Perth civil engineering contractor Macmahon Holdings has secured a $317.5 million three-year funding facility, upsized from $280 million after the book-build closed oversubscribed.

Macmahon lines up $317.5m in debt finance
Macmahon's raise bore rig.

Perth civil engineering contractor Macmahon Holdings has secured a $317.5 million three-year funding facility, upsized from $280 million after the book-build closed oversubscribed.

The company said the raising would comprise three tranches – covering working capital, bank guarantees, and financing equipment.

“This facility refinances the company’s existing term debt and bank guarantees and will also be utilised to fund the purchase of new and used equipment, general corporate purposes and working capital needs,” Macmahon chief financial officer Sybrandt Van Dyk said.

He said the facility provided the company with stability and certainty of funding to enable future growth, and that it would broaden its banking relationships by incorporating a number of new financiers into the facility.

Commonwealth Bank of Australia and HSBC acted as lead bookrunners of the facility, with financial firms Caterpillar Financial Australia, GE Capital and Taiwan Business Bank also playing a role.

“In addition to our existing lenders, we are very pleased to have the support of several new financiers in the syndication,” Mr Van Dyk said.

In August, Macmahon announced it had returned to the black with $30.4 million full-year profit and $1 billion in revenue.

It mobilised the world’s most powerful raise drilling machine at BHP Billiton’s Olympic Dam mine in South Australia, after securing a $5 million contract with the resources giant in June.

Macmahon’s share price rose by 1.8 per cent to 11.2 cents per share at 12:30pm. 

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