Deal: Australian Gas Infrastructure Group has been advised on the establishment of a new funding vehicle and secured debt program, to be rated A3 by Moody’s and BBB+ by S&P, and on the creation of its inaugural senior secured AMTN programme.

Value: Undisclosed.

Area: Banking and finance

Key players: The Pinsent Masons banking and finance team advising on the transaction was led by partner Jim Hunwick, senior associate David Kennedy and lawyers Jesse McNaughton and Katie Murray and included assistance from partner Jeremy King, legal director Michael Capsalis and graduate lawyer Abigail Gedge.

Law firm Sidley Austin advised AGIG on matters relating to New York law. Allens advised the financiers. 

Deal significance: Australian Gas Infrastructure Group (“AGIG”) is described as one of the largest gas infrastructure businesses in Australia. It is owned by the CK Group.

“The new funding vehicle and secured debt program will fund AGIG’s Multinet, Dampier to Bunbury Pipeline and AGI Developments businesses and achieve a ratings upgrade, replacing three separate pre-existing programs,” a statement from Pinsent Masons explained.

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“Pinsent Masons drafted and negotiated all documentation necessary for AGIG to establish new common funding terms, intercreditor arrangements and a security package to enable AGIG to consolidate its existing debt programs into a new secured debt program and to source future debt under this new secured debt program. The new debt program enables debt to be sourced from domestic and international debt and capital markets on the same common terms, at a rating of A3 by Moody’s and BBB+ by S&P.  

“This is a landmark transaction for AGIG, which is the most significant debt project undertaken by AGIG to date, collapsing three different debt programs into one new, superior program. This included the integration of around A$4 billion of debt from the three programs, comprising domestic and international bank facilities, Australian Medium Term Notes (‘AMTN’), US privately placed notes and hedging arrangements, into the new program.”

Commenting further on the deal, banking and finance partner Mr Hunwick said: “We congratulate AGIG on taking the initiative to transform its senior debt arrangements into a new, market-leading multi-platform debt program and on achieving its ratings upgrade.”

“This huge project showcases the expertise, depth of talent and commitment available to borrowers and financiers who choose to engage the Pinsent Masons finance team in Australia,” he added.