Bapcor refinances debt, gains access to $520m
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Autobarn-owner Bapcor has successfully entered into a new $520 million debt package with existing lenders and new financier Metropolitan Life Insurance Company (MetLife) to establish an improved debt platform.
One of the largest institutional investors in the world, MetLife is joined in the financing by ANZ, Westpac, MUFG Bank and HSBC.
According to the business, the new package provides increased headroom, improved terms and pricing, as well as a new tranche of long-term debt.
“The new debt facility has improved terms and pricing and provides significant flexibility for Bapcor going forward,” Bapcor chief financial officer Greg Fox said in a statement to investors.
“We are pleased to have the ongoing support of our existing relationship banks and the addition of MetLife provides Bapcor with added diversification and an extended debt maturity profile.”
The package includes funding in three-, five- and seven-year tranches: with a three-year $70 million tranche available for working capital requirements, as well as a three-year $200 million tranche, $150 million five-year tranche, and a $100 million seven-year tranche, all available for general corporate purposes.
Bapcor said its net debt had reached $350.9 million as of the end of 2018, having increased $61 million compared to June 2018.
Questions & Answers
Q.Who are the key financial institutions involved in Bapcor's new debt package?
Who are the key financial institutions involved in Bapcor's new debt package?
The new debt package includes existing lenders ANZ, Westpac, MUFG Bank, and HSBC. They are joined by a new financier, Metropolitan Life Insurance Company (MetLife), one of the largest institutional investors globally.
Q.What is the total value of the new debt package and what are its main benefits for Bapcor?
What is the total value of the new debt package and what are its main benefits for Bapcor?
The total value of the new debt package is $520 million. It provides Bapcor with increased headroom, improved terms and pricing, significant flexibility, and an extended debt maturity profile.
Q.How is the $520 million debt package structured in terms of tranches and their purposes?
How is the $520 million debt package structured in terms of tranches and their purposes?
The package includes a $70 million three-year tranche for working capital. Also, there's a $200 million three-year tranche, a $150 million five-year tranche, and a $100 million seven-year tranche, all designated for general corporate purposes.
Q.What was Bapcor's net debt position at the end of 2018?
What was Bapcor's net debt position at the end of 2018?
Bapcor's net debt stood at $350.9 million at the end of 2018. This represented an increase of $61 million compared to their net debt position in June 2018.
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