Channel refinances bank debt

Channel Infrastructure NZ Limited (NZX:CHI) announces it has entered into documentation to refinance its bank facilities reducing financing costs, increasing total facility limits and extending the tenor. This supports lowering Channel Infrastructure’s cost of capital to align with an infrastructure business underpinned by long-term customer contracts with strong counterparties.

On completion of the refinancing, Channel Infrastructure will have increased its total bank facilities to $235 million (an increase of $30 million) providing further liquidity as it continues to execute on its growth strategy. Channel remains committed to targeting credit metrics consistent with a shadow BBB+ credit rating and remaining within its target leverage range of 3 – 4 times EBITDA.

Channel has expanded its banking group to include Industrial and Commercial Bank of China (New Zealand) Limited, in additional to its existing lenders: ANZ Bank New Zealand Limited, ASB Bank Limited, Bank of New Zealand Limited, China Construction Bank Corporation, New Zealand Branch, and Westpac New Zealand Limited.

As a result of the refinancing, the all-in cost of drawn facilities reduces by 0.6% and the majority of Channel’s extended facilities have a tenor of 5 years. Channel’s debt facilities total $435 million (including retail bonds) and the weighted average bank debt maturity increases from 2 years to 4.75 years. The refinancing does not change the existing covenants, undertakings or negative pledge arrangements with Channel’s lenders or bondholders.

For details on the debt maturity profile and fixed debt profile refer to Appendix I.

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Appendix I – Debt maturity profile


Authorised by:
Chris Bougen
General Counsel and Company Secretary

Investor Relations contact:
Anna Bonney
[email protected]

Media contact:
Laura Malcolm
[email protected]

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Announcement PDF