International-Matex Tank Terminals (IMTT), a subsidiary of Macquarie Infrastructure Corporation (MIC), has completed a refinancing of US$1.7 billion of long-term debt and revolving credit facilities.The refinancing funded on Thursday, May 21, 2015, as anticipated.
James Hooke, chief executive officer of MIC, stated:
"We are pleased with the outcome of the refinancing of IMTT and the receptivity of the market to the credit. The issuance of investment grade credit ratings by both S&P and Fitch underscores the sound financial condition of the business."
Proceeds of the new debt package not used to refinance existing facilities will be available to fund growth projects at IMTT or other of MIC's businesses.
IMTT's new financing package includes $600 million of senior notes, $325 million of which mature in 10 years and $275 million of which mature in 12 years. The notes bear interest at a weighted average rate of 3.97%.
IMTT also refinanced its entire portfolio of $509 million of outstanding tax exempt bond debt. The maturity of the bonds increased from an average of 2.9 years to 7 years. The weighted average interest rate on the bonds is 1.73%, unhedged. IMTT is expected to fix the floating rate (1 month LIBOR) component of the interest rate using interest rate swaps with a maturity of approximately six years.
The business has also been provided with access to a revolving credit facility of $600 million that is currently undrawn. The interest rate on the revolver will vary with IMTT's aggregate leverage. At current leverage levels, the first dollar drawn on the revolver would bear interest at a rate of 1.81%.