SYDNEY May 12 (Reuters Basis Point) - A large syndicate,
with ANZ, Commonwealth Bank of Australia and Westpac as leads,
has clubbed a loan of close to A$5.5bn (US$4bn) for a A
Macquarie Group-led consortium's A$7.62bn acquisition of New
South Wales power grid Endeavour Energy.
The loan includes significant bridge tranches to be
refinanced in the debt capital markets. However, the loan
syndication task is said to be modest given the large number of
There are well over 10 involved, including Japanese mega
banks, as well as Asian, Canadian and European lenders. The
pricing is said to be more competitive than the 105bp (3.5
year), 135bp (five-year) and 160bp (seven-year) over BBSY that
Industry Funds Management and AustralianSuper paid for their
The margins for the Endeavour loan are in line with what
Hastings Funds Management and First State Super are expected to
pay for their A$1.62bn loan to back their acquisition of NSW
land registration agency Land and Property Information.
The acquisitions, expected to close in the second quarter,
will go a long way to boost the tepid Australian loan market,
where volumes crashed 53% to a seven-year low of US$7.15bn in
the first quarter.
The Macquarie consortium acquired a 50.4% stake in Endeavour
at a premium to the company's total regulated asset base of
A$6.2bn, Reuters reported. Macquarie's consortium partners are
Canadian fund British Columbia Investment Management,
Australia's AMP Capital and Qatar Investment Authority.
The consortium is also responsible for refinancing all of
Endeavour’s existing debt, according to the Reuters report.
(Reporting by Sharon Klyne; editing by Dharsan Singh)