A source told Bloomberg that AquaSure would be cutting its borrowing costs due to its AUD 3.7 billion or USD 3.5 billion refinancing plan. AquaSure built the desalination plant in Victoria, Australia.
A person familiar with the deal said the refinance facility would reduce interest margins to about 135 basis points and 165 points more on the bank's bill three-year and five-year swap rates, respectively. The source spoke on the condition of anonymity as the details were private. Data gathered by Bloomberg revealed that the 2009 five-year loan entered into by AquaSure to build the desalination facility was at 350 basis points.
Earlier in July, AquaSure and the Victoria government announced that they had hired Macquarie Group to advise them on the planned refinancing. The source said both AquaSure and the Victoria government had already talked with ten banks who could issue the new loan. The person also added that AquaSure was also looking to conduct a private placement in the US to raise the debt.
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