BBGI eyes fresh fundraise(3)

The London-listed fund would use the proceeds to repay a new, £80m credit facility it has secured from ING and KfW.

Bilfinger Berger Global Infrastructure (BBGI) is considering raising fresh equity over the next three years to repay a new debt package it has just secured.

The London-listed fund has announced that Dutch lender ING and German-based KfW IPEX-Bank (KfW) are providing the company with a revolving credit facility of £80 million (€107 million; $121 million) to replace a £35 million facility with Royal Bank of Scotland, National Australia Bank and KfW that was due to expire in July 2015.

BBGI said the facility will mainly be used to fund acquisitions and provide letters of credit for investment obligations. It will be complemented by a further £100 million incremental accordion tranche, for which no commitment fees are paid, allowing BBGI to increase the facility to £180 million should it so choose.

“The larger facility gives BBGI the ability to complete larger portfolio transactions or acquisitions from multiple vendors very quickly. The revolving facility can be repaid through a future equity issue which is more cost efficient for investors,” said Frank Schramm, co-chief executive of BBGI, in a statement.

The new facility also allows BBGI to source debt at a more advantageous rate, with the borrowing margin decreasing from 225 basis points (bps) over LIBOR under the old facility to 185 bps under the new one. It expires in January 2018.

Launched by German developer Bilfinger Berger in December 2011, BBGI now manages 35 public-private partnership and Private Finance Initiative assets. It has about £466.5 million under management.