Duet Group Ltd’s
(ASX:DUE) 79.9% owned Victorian gas provider, Multinet Gas, has reached an agreement with US bond investors to raise US$185 million through a private placement of five year senior unsecured notes.
The company says the transaction includes the execution of cross currency interest rate swaps to convert the funds to $230 million.
Multinet Gas says the funds will be invested in its subsidiary Energy Partnership Gas before being used to repay debt which matures in July 2011.
The utility company says the interest rate margin achieved was attractive and reflected the current strong demand for investment grade utility issuers.
CEO Hugh Gleeson says the company is delighted by the support from bond investors for its inaugural US private placement.
Multinet is the largest distributor of natural gas in Victoria, 79.9% owned by Duet Group, with Prime Infrastructure Group, formerly Babcock & Brown Infrastructure, holding the remaining 20.1% interest.
Duet Group booked a $62.28 million loss for the 2009 financial year.
