MIC completes IMTT refinancing

The fresh $1.7bn liquidity package includes $600m worth of senior notes with a maturity of at least 10 years.

Macquarie Infrastructure Company (MIC) announced late last month the completed refinancing of approximately $1.7 billion worth of long-term debt and revolving credit facilities for its International-Matex Tank Terminals (IMTT) portfolio company. 

A subsequent review of the financial condition of IMTT by Standard & Poor's (S&P) and Fitch Ratings (Fitch) resulted in the assignment of BBB- investment-grade ratings with stable outlook, according to a statement by MIC.

“We are pleased with the outcome of the refinancing of IMTT and the receptivity of the market to the credit,” said MIC chief executive James Hooke. “The issuance of investment grade credit ratings by both S&P and Fitch underscores the sound financial condition of the business.”

The new financing package includes $600 million worth of senior notes, of which $325 million will mature in 10 years and the remainder will mature in 12 years, with notes bearing interest at a weighted average rate of 3.97 percent. The business's entire portfolio of $509 million worth of outstanding tax-exempt bond debt was also refinanced. 

The average bond maturity was increased from 2.9 to seven years, and the weighted interest rate average on the bonds is 1.73 percent unhedged, the statement said, adding that it is expected that IMTT will fix the floating rate component of the interest rate using swaps with a maturity of approximately six years.

IMTT was also provided with a revolving credit facility, worth $600 million and currently undrawn, as part of the transaction, the company added. Interest rate for this facility will vary with aggregate leveraging levels. The first dollar drawn would bear interest at a rate of 1.81 percent at the current ratio.