- Aurizon Holdings (AZJ) has announced a new refinancing deal worth $1.3 billion
- The deal will involve Aurizon’s previous lenders, along with an additional two new banks
- The new deal increases Aurizon’s upper credit limit by $420 million and extends its repayment schedule to 2023 onwards
- Aurizon’s next scheduled debt maturation is October of this year, which will now be funded by the new credit line it has established
- Aurizon will then not have a required repayment until 2023
- Aurizon shares are trading just under a per cent higher today, currently worth $4.94 each.
Aurizon Holdings (AZJ) has agreed to a restructured debt deal, giving the company access to some $420 million in additional financing.
The restructured deal is worth a total of $1.3 billion.
As part of the new deal, the existing debts the company owes are being paid and cancelled.
The new bank facilities mature between 2023 and 2025, as opposed to Aurizon’s previous debt cycle that would have been due next year.
The managing director and CEO of Aurizon, Andrew Harding, said the company’s operations had continued with minimal interruptions during the COVID-19 pandemic across the three business of Bulk, Coal and Network.
“I am proud of the outstanding efforts of our employees during this very challenging time,” Andrew said.
“As an essential transport provider to the Australian economy, we have provided safe, reliable services to our customers and continued to support regional communities where our people live and work,” he said.
The company has a scheduled maturation for October for a $525 million figure. The new debt facility will fund the payout of that credit facility, and the company will then have no further payment obligations until 2023.
The refinancing gives the Aurizon group more than $1.1 billion in available liquidity.
The acting CFO of the Aurizon group, George Lippiatt, said the refinancing deal had come about due to Aurizon’s good relationship with its banks, including two new lenders in this latest debt facility.
“The new facilities are bilateral in nature which provides greater flexibility for future funding requirements,” George explained.
“Our commitment to a long-term funding strategy of diversifying sourced and lengthening of tenors remains,” he said.
Aurizon shares are trading 0.82 per cent higher today, currently worth $4.94 each.