Barminco rolls over debt ahead of initial public offering
Mining services provider Barminco has refinanced debt worth $US350 million ($467m) ahead of plans to list on the ASX.
Mining services provider Barminco has refinanced debt worth $US350 million ($467m) ahead of plans to list on the Australian Securities Exchange.
The high-yield bond issue was priced at 6.625 per cent, which is a reduction on the 9 per cent rate payable on the previous bonds, and the maturity term is mid-2022.
Goldman Sachs, with HSBC and SC Lowy led the issue, which was three times oversubscribed.
US and Asian institutions were eager to back the issue, and swaps are in place to protect Barminco against currency fluctuations. The company has also secured a $100m debt facility.
The latest situation comes after Barminco, which is owned by Gresham and advised by the boutique advisory firm, had bonds that were due to expire in a year.
Barminco chief executive Peter Stokes said the support for the issue was pleasing and allowed the company to establish a platform to pursue growth.
The refinancing clears the way for the company to forge ahead with its IPO plans, with an adviser expected to be appointed shortly. Investment bank UBS has been sounding investors about their appetite for a float, which led some to believe the bank was already on the deal.
However, the Swiss powerhouse has not been formally appointed. Given Goldman Sachs’s close ties to Barminco, it also may be on the ticket.
Some fund managers are expected to back Barminco’s plans for the business to list on the ASX, given its exposure to the buoyant gold mining sector that draws on its equipment and expertise for complex mining projects.