Prime Infrastructure will take out a loan from an affiliate of Brookfield Infrastructure Partners in advance of the two companies’ merger, Prime said in a statement to the Australian Securities Exchange.
The firm said it will replace an undrawn A$300 million (€216 million; $281 million) corporate debt facility with a new revolving credit line “to be provided by an affiliate of Brookfield Infrastructure Partners”. The new facility will mature in February 2013 and will also be in the amount of A$300 million.
Brookfield Infrastructure Partners and Prime Infrastructure negotiated the replacement facility on “substantially the same terms” as the old facility, according to the statement. Prime said the facility will provide it with greater funding options and flexibility than the old debt facility.
The refinancing comes on the heels of a joint merger announcement by the two firms. On 23 August, Brookfield, which already owned 40 percent of Prime, offered to buy the remaining 60 percent of the firm it did not already own in a deal valuing it at A$1.6 billion.
The two firms hope to come together into one “leading global infrastructure company” with a market capitalisation of $2.5 billion.
The refinancing of Prime’s A$300 million debt facility is not conditional on the success of the merger, Prime said.
Brookfield lends A$300m to Prime Infrastructure
An affiliate of Brookfield Infrastructure Partners will provide the loan, which will replace an undrawn A$300m corporate debt facility owed by Prime Infrastructure. The announcement comes on the heels of Brookfield’s A$1.6bn bid to buy out the remaining 60% of Prime it does not already own.
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