TSI to sell wind farm, tap market for $110m
Transfield Services Infrastructure Fund (TSI), which is 47.5% owned by Transfield Services Limited (TSE), announced its intention to sell its Mt Millar Wind Farm in South Australia for $191 million. The fund also said it would tap the market for $110 million as part of a series of initiatives that are expected to provide financial flexibility and strengthen the fund’s balance sheet.
The initiatives followed the conclusion of TSI’s Capital Structure Review and include extending TSI Fund’s corporate-level debt maturity to May 2015.
The fund said it has entered into a share sale agreement with New Zealand’s largest energy generator, Meridian Energy Limited, for the sale of 100% of the shares in the TSI Fund subsidiary that owns the Mt Millar Wind Farm.
The sale is expected to complete by 31 May 2010.
TSI said the fully underwritten equity offer is comprised of a placement to institutional investors of approximately $30 million and an accelerated non-renounceable pro-rata entitlement offer to raise approximately $80 million.
The fund said shareholders would be able to subscribe for 5 new TSI Fund shares for every 12 existing TSI Fund shares held as of this Friday for 70c each.
Meanwhile, TSI said its FY10 forecast final distribution is expected to be 4c per share and the distribution for FY11 is expected to be 8.2c per share.
The fund said incorporating the one-off impacts resulting from the review, FY10 reported EBITDA is expected to be $75 million with a FY10 reported Net Loss After Tax of $39.5 million.
TSI said it is forecasting FY11 EBITDA of $95.4 million and Net Profit After Tax of $16.4 million.
Transfield Services Limited said it would be committing up to approximately $53 million through a $24 million partial take-up of the institutional entitlement and a $29 million sub-underwriting of the retail offer.
At the close of trade yesterday, TSI shares were trading at 90c, while TSE shares were trading at $4.02.
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