By Kenneth Lim
Boston, May 14 - Australia's APA Group priced $140 million of seven- and 10-year notes at a spread of 575 basis points over Treasuries, according to a press release.
The offering was split into $65 million of 8.35% notes due July 2016 and $75 million of 8.86% notes due July 2019.
Proceeds will be used to pay down existing debt drawings and extend the average tenor of APA's debt portfolio.
APA is a Mascot, New South Wales-based energy transmission company.
"The transaction is consistent with our intention to progressively move to a position whereby no more than 20% of debt will mature in any financial year," APA chief financial officer Ross Gersbach said in a statement. "U.S. investors continue to be attracted to APA's secure infrastructure business, strategy and leading position in Australia's gas transmission sector. We are pleased that investors have strongly supported this offering."
| Issuer: | APA Group
|
| Issue: | Notes
|
| Spread: | 575 bps over Treasuries
|
| Distribution: | Private placement
|
| Settlement: | July
|
|
|
| Seven-year notes
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| Amount: | $65 million
|
| Maturity: | July 2016
|
| Coupon: | 8.35%
|
|
|
| Ten-year notes
|
| Amount: | $75 million
|
| Maturity: | July 2019
|
| Coupon: | 8.86%
|
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