Asciano restructures bank facilities, plans to simplify corporate structure
Asciano Group (AIO) said it has completed the restructuring of its bank facilities. The ports and rail operator said the restructure provides for the release of security held by the bank syndicate and removes prohibitions on borrowing outside the existing facilities.
Managing director and CEO, Mark Rowsthorn, said the amendments provide the company with flexibility to fund its growth profile and allow it to refinance its $2.25 billion debt maturing in May 2012 in the debt capital markets.
“By providing access to the full range of funding options, these amendments will significantly improve Asciano’s financial flexibility,” Mr Rowsthorn said.
“We can now commence implementation of our medium term debt strategy to diversify our funding and lengthen our maturity profile.”
In a separate statement, Asciano said its board of directors and that of the responsible entity of the Asciano Finance Trust, The Trust Company (RE Services) Limited, have each approved a proposal to simplify the corporate structure by converting from a stapled security into a single holding company.
“The Corporatisation Proposal, if approved, will provide a more suitable corporate structure for Asciano and is the final step in transforming Asciano into a typical industrial company within the top 50 entities listed on the Australian Securities Exchange,” the company said.
Asciano said the attributes of the simplified corporate structure are likely to attract a broader range of investors, both domestically and overseas.
The proposal remains the subject of a number of conditions.
The company said if approved, it is expected that the proposal would be implemented in mid November 2010.
Asciano said under the proposal, the existing stapling arrangements would be terminated and shareholders would exchange all of their units in the Asciano Finance Trust for shares in a newly incorporated wholly-owned subsidiary of Asciano Limited, called NewCo.
The company said it would then acquire all of the NewCo shares from the NewCo shareholders in exchange for the issue to them of new Asciano Limited shares.
A share consolidation would be effected so that there is no change in the total number of shares in Asciano on issue following implementation of the proposal.
As at 1428 AEST, Asciano shares were up 1.5c to $1.69.
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