Macmahon secures A$317.5m funding facility

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Image credit: Macmahon webpage

Australian mining services company Macmahon Holdings Limited has announced a new A$317.5 million three year funding facility that is set to secure the company’s growth.  

Image credit: Macmahon webpage
Image credit: Macmahon webpage

According to the ASX Announcement, the book-build closed oversubscribed, with the facility increased from $280 million to $317.5 million. The Commonwealth Bank and HSBC were the lead arrangers.

The facility has three tranches, covering working capital, bank guarantees and equipment financing.

“This facility refinances the Company’s existing term debt and bank guarantees and will also be utilised to fund the purchase of new and used equipment, general corporate purposes and working capital needs,” said Macmahon Chief Financial Officer, Sybrandt van Dyk.

Mr van Dyk pointed out that the company is extremely pleased to continue its long-standing relationship with The Commonwealth Bank of Australia, The Hong Kong and Shanghai Banking Corporation Limited, Caterpillar Financial Australia Limited, GE Capital and Taiwan Business Bank.

Macmahon has also incorporated a number of new financiers into the facility.

“In addition to our existing lenders, we are very pleased to have the support of several new financiers in the syndication, namely Hua Nan Commercial Bank, Taiwan Cooperative Bank, Mega ICBC and Macquarie Bank,” Mr van Dyk said.