Contractual close on a significant transport project: Toll-road company, Transurban Group has updated the market on contractual close on the West Gate Tunnel Project in Victoria with the Victorian State Government, for which the group has indicated for $1.9 billion equity raising and financial close of $550m tranche of syndicated debt facility. The capital raising is signalled to be carried out through a fully underwritten renounceable entitlement offer with retail rights trading and the proceeds raised will be used to contribute to funding its share ($4.0 billion) of the West Gate Tunnel Project and for general corporate purposes. The Offer is structured to be a fully underwritten, pro rata accelerated renounceable 3 for 37 entitlement offer, and is labelled as the biggest underwritten rights issue of the year. With this, TCL has achieved closure to build, toll and operate the project until 2045.
It has been said that Macquarie Capital, Morgan Stanley and UBS are set to launch the deal at $11.40 a share. TCL has been working on this capital raising for quite some time as the group was seeking the funding to work on the West Gate Tunnel, the expansion project. TCL was also looking for an extension to its tolling concession at the City Link road.
Meanwhile, TCL has reaffirmed its distribution guidance of 56.0 cents per share (cps) for FY18, inclusive of the recently announced interim distribution of 28.0 cps for the six months ending 31 December 2017.
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Development Pipeline (Source: Company Reports)
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