Leighton inks $1.4B bond facility

CONTRACTOR Leighton Holdings has signed a $A1.4 billion syndicated bond facility and has also priced a $US500 million ($A482 million) senior note issue in the United States.
Leighton inks $1.4B bond facility Leighton inks $1.4B bond facility Leighton inks $1.4B bond facility Leighton inks $1.4B bond facility Leighton inks $1.4B bond facility

Leighton Holdings chief executive officer Hamish Tyrwhitt.

Lauren Barrett

The three-year facility doubles the size of the existing $A700 million syndicated performance bond facility.

Leighton said the syndication targeted a diverse range of banks in the Australasian and Asia-Pacific loan market.

A total of 19 lenders participated, with 10 being new to the facility.

Leighton chief executive Hamish Tyrwhitt said the bonds and guarantees were an important element of its business.

“Bonds and guarantees are provided to our clients as a form of surety for the contractual obligations that we undertake,” he said.

“Having this additional capacity provides the Leighton Group the ability to deliver the significant work in hand capacity it has.”

At the end of September, Leighton had $45.3 billion work in hand.

In a separate statement, Leighton said it would use the senior note issue to refinance existing short-term debt facilities.

The 10-year guaranteed senior notes have a coupon of 5.95% and are guaranteed by Leighton and some of its subsidiaries.

“The notes provide an attractive source of long-term debt capital for the group and diversify our funding profile,” Tyrwhitt said.

Settlement of the offering is expected to occur on November 13, subject to customary closing conditions.

At the end of June 30, the company had undrawn debt facilities totalling $762 million.

The company recently posted a $317 million profit for the nine months ended September 30.