One Industrial Stock peaking to its 52-week high price - Transurban Group

TCL Details

Westlink M7 private placement to prepay term debt: Transurban Group (ASX: TCL) lately announced that Westlink M7 (M7) has proposed to issue A$100 million of fixed rate 12-year, and A$100 million of fixed rate 15-year senior secured notes as part of its capital strategy to diversify debt portfolio into capital markets and extending the average tenor of debt. Further, M7 forms a part of the NorthWestern Roads Group (in which Transurban has a 50% interest), which was created to hold the M7 and to develop the NorthConnex project. The proceeds of the Notes will be used to partly prepay existing term debt due to mature in August 2019 and fund associated transaction costs. The Notes will rank equally with M7’s existing senior debt and settlement is expected to occur in August 2017.
 

Traffic and revenue performance(Source: Company reports)
 
During Q3FY17, Transurban reported 11.3% year on year (yoy) growth in toll revenue at $502 million, while the proportional toll revenue increased by 10.2% yoy at $520 million. The company continues its investment into networks during the quarter, with key milestones reached in development projects across the networks. Further, company’s Average Daily Traffic (ADT) grew by 5.3% yoy, driven by growth in the networks of Brisbane and the Greater Washington Area. Over the past six months the stock has moved up by 23.3% (as at June 01, 2017) and currently peaking its 52-week high price. We give an “Expensive” recommendation on the stock at the current price of $ 12.64
 

TCL Daily Chart (Source: Thomson Reuters)

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