Bapcor refinances debt, gains access to $520m
Autobarn-owner Bapcor has successfully entered into a new $520 million debt package with existing lenders and new financier Metropolitan Life Insurance Company (MetLife) to establish an improved debt platform.
One of the largest institutional investors in the world, MetLife is joined in the financing by ANZ, Westpac, MUFG Bank and HSBC.
According to the business, the new package provides increased headroom, improved terms and pricing, as well as a new tranche of long-term debt.
“The new debt facility has improved terms and pricing and provides significant flexibility for Bapcor going forward,” Bapcor chief financial officer Greg Fox said in a statement to investors.
“We are pleased to have the ongoing support of our existing relationship banks and the addition of MetLife provides Bapcor with added diversification and an extended debt maturity profile.”
The package includes funding in three-, five- and seven-year tranches: with a three-year $70 million tranche available for working capital requirements, as well as a three-year $200 million tranche, $150 million five-year tranche, and a $100 million seven-year tranche, all available for general corporate purposes.
Bapcor said its net debt had reached $350.9 million as of the end of 2018, having increased $61 million compared to June 2018.
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