Deal: Infigen has been refinanced for a five-year period under a $605 million syndicated facility agreement, with Goldman Sachs acting as an arranger and underwriter of a senior term loan, and Westpac and CBA as super senior revolving credit facility lenders.
The refinancing will allow, G+T said, Infigen to repay its decade-old global debt facility that saw the company needing to divert significant amounts of its free cash flow to the repayment of its debt, rather than investing in new developments or making distributions to shareholders.
Value: $605 million.
Area: Banking, finance, infrastructure.
Key players: G+T’s banking and infrastructure team was led by partner to John Schembri, who was assisted by partner Adela Smith and lawyers Stuart Cormack, Lisa Hamilton, Billy Quist and Sean MacDonald.
The KWM team was led by Rebecca Finkelstein and Yuen-Yee Cho, who were both supported by partners Mark Upfold and Dominic Bortoluzzi, as well as solicitors June Guo, Joshua Saville, Boer Ma and Paul Propper.
Deal significance: G+T noted in a statement that the use of the term loan and super-senior revolving credit facility structure for this refinancing for Infigen Energy Group was an “innovative development” in the Australian corporate loan market, despite it previously having been a feature of the leveraged finance market.
Mr Schembri said he was proud to have worked alongside Goldman Sachs, Westpac and CBA on the “successful refinancing” for Infigen.
“We’re delighted our significant experience in refinancing has helped deliver a successful outcome for our cilents,” he said.
“This new facility and innovative approach will give the Infigen Energy Group the debt structure and flexibility to pursue its strategic objectives in the dynamic Australian energy market.”
Speaking about the deal, Ms Cho also commented: “The financing has several unique features, combining an institutional term loan facility underwritten by Goldman Sachs, with a super-senior revolving working capital/bonding facility arranged by Infigen Energy.”
“As far as we are aware, this is the first super-senior working capital/bonding facility in the Australian loan market for a listed corporate,” she said.