Infrastructure investment company International Public Partnerships has renewed its corporate debt facility for a further three years to March 2024, it announced on Thursday, to support its future investment pipeline.
The FTSE 250 company said the new facility had the same overall £400m capacity as the previous fully-committed arrangement, but was structured to more efficiently support the company’s near-term pipeline, comprising £250m on a fully-committed basis and a flexible “accordion” component which would, subject to lender approval, allow for a future extension by an additional £150m.
It said the new facility would expire in March 2024, with a number of key pricing terms negotiated, including a margin of 165 basis points over EURIBOR for euro drawings, and 170 basis points over SONIA for sterling drawings.
They also included a ratchet mechanism for the commitment fee, so that it varied between 50 basis points and 90 basis points, depending on the level of utilisation.
The banking group for the existing facility was retained, including National Australia Bank,
the Royal Bank of Scotland International, Sumitomo Mitsui Banking Corporation and Barclays Bank.
“As at 3 March, the company had utilised £38m of the credit available to it under the debt facility, leaving £212m of the new £250m committed facility available,” the International PPL board said in its statement.
“This available funding will be used to finance the company’s existing preferred-bidder offshore transmission project investment commitments including Beatrice, Rampion and East Anglia One, as well as further investments into Diabolo Rail, Offenbach Police Headquarters and existing digital infrastructure investments.”
At 0946 GMT, shares in International Public Partnerships were down 0.66% at 165.1p.
