The Board of Australian Infrastructure Fund Limited together with Hastings Funds Management Limited as Manager and Responsible Entity of the Australian Infrastructure Fund Trust (together “AIX”) today announced a series of capital initiatives, comprising an underwritten accelerated non-renounceable pro-rata entitlement offer (the “Offer”) and the establishment of a new debt facility (“New Standby Debt Facility”). The capital initiatives will reduce overall gearing and significantly enhance AIX’s financial flexibility, with the repayment of all currently drawn corporate level debt.
The net proceeds from the Offer will be used to fully repay and cancel the Multi Option Facility (“MOF”) which is drawn to $159.5 million as at the date of this announcement and fund organic growth initiatives in the existing Australian airport portfolio.
The capital initiatives consist of:
• A 1 for 2 fully underwritten accelerated non-renounceable pro-rata entitlement offer to raise $211 million at an offer price of $1.10 per security (the “Offer Price”). The underwriters are Credit Suisse (Australia) Limited and Deutsche Bank AG, Sydney branch
• Repayment and cancellation of the existing MOF
• A credit approved $30 million New Standby Debt Facility with a 2-year term (undrawn)
• Alignment of distribution policy with cash flows received from portfolio assets
The impact of these capital initiatives is expected to reduce AIX’s fund weighted average pro-forma gearing to 34.4% from 43.7%, based on net debt and enterprise value as at 31 December 2008.
Mr Jeff Pollock, Chief Executive Officer of AIX, said, “the capital initiatives announced today are a complete fund level capital solution and will provide a platform for further growth.”...
Full press release:
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