Port of Melbourne says overwhelming investor support for its latest domestic transaction enabled a substantial upsize. The A$550 million (US$374.4 million) seven-year transaction comes after the issuer placed a multi-tranche US$602.8 million equivalent deal in the US private placement market in April this year.
On 12 November, Lonsdale Finance (Baa2/BBB), the financing arm of Port of Melbourne, launched a new seven-year, Australian dollar denominated transaction. The deal is being marketed at 140-145 basis points area over semi-quarterly swap, according to joint lead managers ANZ, Commonwealth Bank of Australia and National Australia Bank. Bank of China is a passive lead manager on the transaction.
Deal sources say Coles Group (Coles) was able to include a 10-year tranche in its first deal since demerging from Wesfarmers on the back of significant investor demand, while the issuer’s brand and deal preparation held it in good stead during a period of substantial deal flow.