Transurban, through Transurban Finance Company, has priced €500 million (US$545.8 million) of senior secured 10 year notes under its Euro Medium Term Note Programme.
Pricing was completed on 21 May 2015 and settlement is expected to occur on 28 May 2015. The notes will be issued at a fixed coupon of 2.0%, with proceeds swapped into Australian dollars at a fixed rate of approximately 5.2%. The notes will rank equally with Transurban's existing senior secured debt facilities and will mature in August 2025.
Proceeds from the notes will be used to repay upcoming corporate maturities and drawn debt under existing working capital facilities as well as reset certain legacy interest rate swaps.
Transurban CFO Adam Watson said of the transaction:
"This is Transurban's third issuance into the Euro market, which was heavily oversubscribed with a high quality order book, demonstrating ongoing strong appetite by debt investors for Transurban. The transaction further supports Transurban's capital management strategy by lengthening the average tenor and reducing the average cost of debt at the corporate level."
In early May the Victorian Government approved Transurban's unsolicited proposal to deliver a new Melbourne motorway, the Western Distributor project. Also in early May the firm signed a variation to the 6 October 2014 agreement with the Victorian Government to deliver the CityLink Tulla Widening project.