Transpacific targets debt with refinancing package

Brisbane-based waste management company moves to strengthen its financial position with $1.52b refinancing package

October 28, 2011

Brisbane-based waste management company Transpacific Industries has moved to strengthen its financial position with a billion dollar refinancing package.

As announced in a company statement this week, the package includes a $1.525 billion facility to extend average debt maturity to just over four years.

It also includes up to around $309 million renounceable entitlement offer, underwritten to $260 million, to help reduce debt.

Transpacific Chairman Gene Tilbrook says the refinancing strategy will help reduce borrowings, extend the company’s debt profile and decrease interest expense.

"It will also give us the flexibility to build on our strong market positions and take advantage of the organic growth opportunities in our core waste management businesses," Tilbrook says.

He says the company will continue to focus on reducing its debt through increased operational cashflow reductions in working capital and "possible divestment of surplus properties and non-core assets".

The company has indicated a positive outlook for the 2011-12 financial year.

It is forecasting EBITDA of $452 million and profit before tax and significant items of $119 million for the year ending June 30, 2012.

"Our first quarter’s trading indicates that we are on track to meet this forecast," Tilbrook says.

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