dollar and Australian dollar RMBS tranches
in late July through Pepper PRS 21.
SYNDICATED LOANS
› AGRIMIN IN TALKS WITH NAIF FOR PF
Australia-listed fertiliser company AGRIMIN
is in discussions with Northern Australia
Infrastructure Facility with an eye on
roping in the government fund as a
financier for its potassium sulphate project
in Western Australia, according to a stock
exchange filing on Wednesday.
Perth-based Agrimin is developing the
Mackay Sulphate of Potash project, which
is estimated to cost A$545m (US$392) and
produce 426,000 tonnes of potassium
sulphate per annum over a 20-year life.
Upon commencing operations the project is
expected to generate A$6.3bn in revenues
over its 20-year life.
Agrimin has conducted a pre-feasibility
study for the project and is assessing
several options relating to off-take
agreements and funding, the filing said.
The company considers NAIF as
a potential source of debt funding,
particularly relating to the infrastructure it
would require for the Mackay SOP project.
Agrimin will consider submitting a
formal investment proposal seeking
funding from the NAIF board. It expects to
put in place funding for the project over
the next 12 months.
The project involves development of
more than A$120m in infrastructure in
northern Australia, including construction
of a new transport corridor linking ports in
the region to central Australia.
Agrimin owns 100% of the project, which
is located on Lake Mackay, the largest
undeveloped potassium sulphate-bearing
salt lake in the world.
NAIF was established in July 2016 with
the aim of providing financial assistance
to the states of Queensland, Western
Australia and the Northern Territory for
the construction of infrastructure to benefit
northern Australia. NAIF may approve loans
to June 30, 2021 totalling A$5bn.
› G8 EDUCATION MAKES A$450M DEBUT
Childcare services provider G8 EDUCATION is
making its debut in the syndicated loan
markets with a A$450m multi-tranche
borrowing.
Commonwealth Bank of Australia, Royal Bank
of Canada and Westpac Banking Corp are the
mandated lead arrangers and bookrunners
of the transaction, which comprises a
A$200m five-year term loan tranche A, a
A$200m three-year revolver tranche B and
an A$50m revolver tranche C that will not
be syndicated.
The interest margins are tied to a net
leverage ratio. If the ratio is 2.5x or above,
the margins will be 270bp and 240bp
respectively on tranches A and B. The
margins are 250bp and 220bp for a ratio of
2.0x–2.5x; 230bp and 200bp for 1.5x–2.0x;
220bp and 190bp for 1.0x–1.5x and 210bp
and 180bp for a ratio of less than 1.0x.
Banks are being invited to join tranches
A and B on a pro-rata basis. Lenders joining
as MLAs for commitments of A$75m or
more receive a participation fee of 60bp,
while lead arrangers with A$50m–$74m
tickets earn 50bp. Co-arrangers coming in
with A$35m–$49m tickets receive 40bp.
The deadline for responses is September 24.
Funds are to prepay a S$270m (US$197m)
three-year bond maturing in May 2019 and
for general corporate purposes.
ASX-listed G8 Education owns, operates,
franchises, and manages childcare centres
in Australia and Singapore.EQUITY CAPITAL MARKETS
› BINGO COMPLETES ENTITLEMENT OFFERBINGO INDUSTRIES has completed a A$425m
(US$302m) entitlement offer with
approximately A$73m raised from the
retail tranche.
The waste management and recycling
company raised A$352m from the
institutional offering.
The take-up rate of the retail tranche was
95%. The shortfall will be allotted to sub-
underwriters.
The company launched the entitlement
offer of 167m new shares at A$2.54 each on
a 1-to-2.48 basis.
Most of the proceeds will be used to
fund the acquisition of Sydney-based Dial a
Dump Industries, and the remainder for the
purchase of two properties in Melbourne
and Sydney.
Goldman Sachs and UBS are the
underwriters.› BEGA CHEESE RAISES A$200MAustralian dairy producer BEGA CHEESE has
raised A$200m from a non-underwritten
institutional share placement.
The company sold 27.8m new shares, or
15% of the issued capital, at a fixed price of
A$7.20 per share. The price represented a
5% discount to the closing price of A$7.58
on September 7.
The offer was made to institutional and
professional investors in Australia and
certain overseas jurisdictions, according to
the company.Bell Potter Securities was the lead
manager to the placement together
with co-managers PAC Partners and Select
Equities.
The company said proceeds will be used
to reduce debt following the acquisition
of the Koroit facility and improve Bega
Cheese’s financial flexibility to take
advantage of future growth opportunities
in dairy and food.› AUSDRILL SEALS ENTITLEMENT OFFERAustralian diversified mining company
AUSDRILL has completed a A$252m
entitlement offer with approximately
A$77m raised from the retail tranche.
The company had earlier raised A$175m
from the institutional offering.
Eligible retail shareholders applied for
about A$58m with an additional A$8m
through the retail oversubscription facility,
representing a total take-up rate of 86%,
according to a company statement.
The shortfall after the offering is being
fully sub-underwritten, according to
Ausdrill.
The company launched the entitlement
offer to sell 170m new shares at A$1.47
each on a 1-for-2.13 basis. The price
represented a 14% discount to the pre-deal
spot price.
Proceeds will be used to repay part of
US$300m senior unsecured notes maturing
in 2019.
Shares of Ausdrill traded at A$1.6725
around lunchtime last Friday. The stock is
down 33.4% so far this year.
Deutsche Bank and UBS were the joint
underwriters of the deal.BANGLADESH
DEBT CAPITAL MARKETS
› BANGLALINK BONDHOLDERS CONSENTBANGLALINK DIGITAL COMMUNICATIONS has won
consent from bondholders to amend
certain terms of its US$300m 8.625% bonds
due May 6 2019 to allow it to increase its
consolidated leverage ratio to 5.0x from
3.5x, among other things.
The Bangladeshi mobile operator said
holders of 87.19% of the bonds agreed to
the amendments and waiver.
It offered bondholders a consent
payment of US$1.50 per US$1,000 in
principal amount if they agreed to the
changes.
Citigroup was consent solicitation agent.