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Transurban is pursuing its planned offshore expansion, saying yesterday
that it was talking to four companies about possible partnerships in new road
projects in North America and Europe.
The company also announced that its $1.93 billion debt refinancing was
almost complete and that it would be by June 30.
As part of the refinancing, Transurban has established a $150 million
subordinated debt facility earmarked to help finance expansion into new
projects.
Merchant bank ABN Amro has been appointed lead manager to the refinancing
and will manage the sale of up to half the $1 billion in corporate bonds that
make up most of the new debt.
Transurban may appoint another financier to arrange the rest of the bond
issue.
A $700 million bank debt facility will make up the bulk of the rest of the
finance package. Another $30 million facility is being arranged for working
capital along with a further $50 million subordinated facility for CityLink's
needs.
Finance director Geoff Phillips said the refinancing would save Transurban
about $70 million next year because of more favourable costs and conditions.
That saving comes from $15 million less in interest payments due to lower
interest rates, the scrapping of the requirement to pay back $40 million in
principal next year and the scrapping of obligations to pay $17 million into a
reserve account as security to bankers.
That $70 million saving would allow the payment of a 20c-a-share dividend
during 2002-03, he said.
Mr Phillips said the average interest rates on Transurban's debt would fall
from 9.5 per cent to about 7.2 per cent as a result of the refinancing.
Mr Phillips said the discussions with possible overseas partners had not yet
been completed so no firm commitments had been made.
However, the company was involved with consortiums bidding for the Western
Sydney Orbital and Lane Cove Tunnel projects in Sydney.
Transurban is also awaiting the outcome of an appeal against a decision to
deny it tax deductible status for franchise fees nominally paid to the Victorian
Government.
Actual payment for the fees does not take place until the franchise period
ends in 2032.
Meanwhile, The Hills Motorway denied yesterday that it was in merger talks
with Transurban.
``The company advises no such discussions with Transurban are taking
place," Hills Motorway said in a statement.
The denial came after a media report suggested that the two companies were
in friendly merger talks which were moving close to fruition. The deal was
reportedly worth $2.2 billion.
Transurban's stapled security units closed 3c lower yesterday at $4.37.
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