Major Australian contract mining services group, Perenti, says it has stretched its debt maturity profile out to 2029 with a new US$350 million US bond issue.
The ASX-listed company said its overall debt level was not impacted, with proceeds of the new notes to be used to partially repay US$433 million of existing bond market finance and also part of a syndicated debt facility.
The new 7.5% bond rate compares with 6.5% for the 2020 notes.
Perenti said it was partially redeeming the 6.5% guaranteed senior unsecured notes, due October 2025, with the new funding.
“The company elected to conclude the refinance in the first half of the calendar year, using its December half-year accounts, to avoid the possible impact of the US presidential election on the global debt markets in the latter part of this calendar year,” it said.
Perenti CFO Peter Bryant said the latest note issue orderbook was “significantly oversubscribed at over US$2.3 billion [circa-A$3.5 billion], with allocations made to an extremely high quality and balanced investor base, which is testament to the strength of the business”.
CEO Mark Norwell said the result reflected the “significant progress we have made as a business since our existing notes were issued in 2020”.
“Since the acquisition of Barminco and the formation of Perenti, through to FY23, the quality of our earnings has improved as we have delivered on our strategic objectives,” he said.
“Revenue has grown by 232%, EBITDA has grown by 242% and leverage has reduced by 45%.
“As per our market guidance, our significant improvement in our financial performance is set to continue in FY24 on the back of ongoing business improvement and the DDH1 acquisition in October 2023.”
