Transurban's (ASX:TCL) WestConnex raises $4.2b

Company News

by Anna Napoli

Toll road operator Transurban (ASX:TCL) has raised $4.2 billion in debt as it refinances $4 billion of existing loan facilities.

Proceeds will be used to refinance $4 billion of existing bank debt facilities that were established at the time of Sydney Transport Partners’ acquisition of its 51 per cent equity stake of West Connex in 2018. It will also be used to fund associated transaction costs.

The interest rate exposure on the term debt facilities will be fully hedged.

Transurban Interim CFO Tom McKay said of the transaction: “This refinancing demonstrates the underlying strength of the WCX business and has delivered a substantial reduction in WCX’s funding costs.

Shares in Transurban (ASX:TCL) are trading 0.9 per cent higher at $13.76