According to Reuters, Alinta Energy is preparing for an estimated US$1 billion debt issue for its United States term Loan B (TLB) institutional market debt. The issue would be used to refinance a debt that is scheduled to mature, related by sources from the bank that has knowledge of the deal. Alinta is part of an increasing number of borrowers from Australia that is lured by the debt market's offered price and conditions.
Alinta who is managed by TPG Capital, a huge name in US buyouts, has existing loans, namely a Aus$400 million super senior debt, a Aus$1.2 billion or US$1.17 billion in senior term debt and interest swaps of an estimated Aus$210 million on a market-to-market term, added the sources.
The availability of the TLB market is causing more difficulty to the loan bankers who are already struggling with the minimal financing growth in Australia.
John Corrin, Global Head of Loan Syndication at Australia & New Zealand Banking Group said, "Every domestic Australian bank should be worried about leakage to this market. It is business we are missing out on."
Alinta was reached for any comment but its spokeswoman refused to provide one. The sources providing the information requested anonymity due to the sensitivity of the matter.
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