ALS taps better US debt market terms

ASX-listed company says latest note issue improves debt profile

Major Australian analytical services company ALS says a circa-US$200 million US debt market issuance – including a $22m “green tranche” – will extend its average debt maturity profile and reduce its funding costs.

The ASX-listed company (ALQ) said the A$276m of long-term US private placement (USPP) senior notes were 3.4-times oversubscribed by new and existing investors.

The company had A$664m net debt on its balance sheet at the end of September, 2021.

“The new USPP issuance will significantly extend the group’s weighted average debt maturity profile to 6.9 years, on a drawn and undrawn basis, and reduce total weighted average funding costs by 20 basis points,” ALS said.

“It is comprised of three tranches each of 10 years tenor denominated in US$140m, A$50m and C$30m.”

ALS says most of the funds will be used to pay out an existing A$263m USPP debt tranche that matures in late July this year.


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