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AusGroup refinances term loan, upsizes banker's guarantee
AUSGROUP on Wednesday announced that it has entered into a facility agreement for a US$20 million three-year term loan and A$76.5 million banker's guarantee with DBS Bank.
The Singapore-listed company said the loan facility will be used to refinance its existing facility with Wingate Group "at a much reduced all-in interest rate", while extending AusGroup's debt maturity profile to 2018.
As AusGroup's orderbook has increased, the banker's guarantee facility has also been upsized from A$50 million to A$76.5 million. This will facilitate the group's increasing need for bid bonds, performance bonds, and financial guarantees, the company said.
Said AusGroup chief financial officer Gerard Hutchinson: "Our goal is to become a leading service provider to the oil & gas sectors in Australia and South-east Asia and the continued support of our lenders is a necessary ingredient to being able to achieve this. Whilst we will use these funds to retire the Wingate facility, we are thankful for their past support."