Macmahon (ASX:MAH) has finalised a new four-year $550 million syndicated debt facility, which replaces the existing legacy facilities.
The new facility, which matures in June 2029 with a one-year option to extend, was launched primarily to retire legacy facilities and provides a simplified structure with improved pricing, covenants and terms.
The bookbuild of the new facility was oversubscribed and introduced several new banks to the company.
Macmahon, which has a market capitalisation of $678.82 million, says this support from banks provides the company with an opportunity to upsize the facility at favourably pricing, terms and an extended period which provides a robust liquidity buffer.
CEO Michael Finnegan says the debt facility allows the company to retain a conservative liquidity position while delivering on strategically aligned projects and growth.
“The interest from financiers shows the continued confidence of our banking syndicate in the company’s performance as well as the sector and industry more broadly,” Finnegan says.
The legacy facility includes a $330 million facility which matures in September 2026 and Macmahon’s wholly owned subsidiary, following an acquisition, Decmil’s (ASX:DCG) legacy $30 million bank facility with the Commonwealth Bank.
The $30 million facility was a 12-month revolving facility that was used for general corporate purposes.
Macmahon is a mining and civil infrastructure services provider that operates throughout Australia and Southeast Asia.
Write to Aaliyah Rogan at Mining.com.au
Images: Macmahon
