19/12/2011 - 09:30

Macmahon secures $475m funding facility

19/12/2011 - 09:30


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Macmahon secures $475m funding facility

Contractor Macmahon Holdings has upsized its syndicated financing facilities from $240 million to $475 million, following a successful half year with the confirmation of around $1.7 billion of new business won.

The facility comprises three tranches over a three and four year period, with Tranche A and B offering a $75 million working capital cash advance facility and a $125 million bank guarantee facility over three years.

Tranche C offers a $275 million equipment finance facility over three and four years.

The West Perth-based company said in a statement the facility was an integral part of its capital management programme and provided increased flexibility for it to pursue its growth domestically and overseas.

Macmahon chief financial officer Theresa Mlikota said the facility was negotiated on considerably improved terms and conditions, which was testament to the long-term outlook of the business.

“With a record order book and an expanding geographical diversity of projects across the globe, the new facility confirms the strength of the current position of the business and enables us to deliver further growth over the next three to four years,” she said.

Ms Mlikota said the new arrangements continued Macmahon’s relationship with Commonwealth Bank of Australia, HSBC Bank Australia, Caterpillar Financial Australia, Sumitomo Mitsui Banking, GE Capital, First Commercial Bank, Taiwan Business Bank and Chang Hwa Commercial Bank, and introduced Export Finance & Insurance to the syndicate.

The company also said it has received strong expressions of interest for its stand-alone funding of the Mongolian Tavan Tolgoi joint venture project.

Macmahon shares were steady at 55 cents at 9.30am WST today.


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