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Aecom to issue $1bn in senior notes amid Trump optimism

The engineering firm thinks broad bipartisan support means the US is at a ‘unique moment in history where we have all the stars aligned’ for major infrastructure investment.

Senior notes issued by California-based infrastructure consultant Aecom totalling $1 billion in aggregate principal will pay interest semiannually at a 5.125 percent rate, down slightly from notes previously issued by the company, as the company banks on a US infrastructure boost under President Trump’s tenure.

The senior unsecured notes will mature on 15 March 2027, the firm said in announcing the pricing. Sale of the notes is expected to close next week, according to Aecom, with the issuance targeting qualified institutions and investors. In September 2014, Aecom priced $1.6 billion in senior notes at 5.75 percent and 5.875 percent.

The announcement comes a week after Aecom, a firm that designs, builds and maintains infrastructure assets worldwide, reported first quarter revenue of $4.4 billion, up one percent from the same period last year. With clients in more than 150 countries, Aecom earned $17.4 billion in revenue in 2016, down around 3 percent from 2015’s numbers.

Aecom has been boosted recently by President Trump’s election and promise to focus on rebuilding US infrastructure. The company’s chief executive said last week that the country was at a “unique moment in history where we have all the stars aligned” for major infrastructure investment, citing broad bipartisan support.

In December, Aecom authored a report for the Treasury Department detailing the 40 most important transportation and water projects needed across the country. Programmes listed include the I-10 Highway project across the southern US, the California High Speed Rail, and a rural water supply programme in the Midwest.