MIRVAC has priced a long term US Private Placement note issue totalling $A506 million.
The USPP issue will comprise three tranches of notes across tenors of 9, 11 and 12 years for $A220 million, $A136 million and $A151 million respectively.
The issue see the group’s weighted average margin and line fees increase by approximately 4 bps, and the average borrowing cost for FY2014 will remain at or slightly below the average borrowing cost reported at 30 June 2013 of 5.7%.
The transaction was four times oversubscribed from the initial $A150 million target.
“This transaction improves our capital position and will see our overall weighted average debt maturity profile increase to approximately 4.8 years at 31 December 2013,” Mirvac’s CEO Susan Lloyd-Hurwitz said.
“Since the S&P Credit rating upgrade to BBB+ in September 2013, the group has raised over $700 million of long-term debt and as a result has achieved our target to increase the proportion of debt provided by debt capital markets to greater than 60%,” she added.
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