Civmec: Four-year note offering met strong investor demand

Australian coinsAustralian coins

Construction and engineering services provider Civmec said on Friday that its A$60 million four-year senior secured note offering closed after meeting with strong demand.

Pat Tallon, CEO of Civmec, said in the statement filed to SGX before the market open on Friday that the offering received strong demand and characterized it as confidence in the company’s performance and growth strategy.

“The transaction provides additional tenor to the company’s debt maturity profile, diversifies our current debt funding sources and provides greater operating flexibility to fund future growth,” Tallon said.

“The proceeds raised will be used to refinance some existing debt with the balance to be utilised to fund a portion of the investment in our world-class shipbuilding and maintenance facilities currently under construction at our Henderson headquarters in Western Australia,” he added.

The offer was open only to professional and sophisticated investors, it said.

Civmec can opt to redeem the notes after two years, it said.

National Australia Bank was the sole lead arranger for the transaction, the filing said.

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