Toll completes US private placement deal

Toll Holdings has successfully completed an issue of US private placement notes for US$275 million.

The notes were raised for terms of five, seven and 10 years at a margin of 180 bpts over US Treasuries.

The proceeds of this transaction are being converted into Singapore dollars and Hong Kong dollars to refinance Toll’s existing short-term debt, at the same average interest costs.

This placement significantly reduces major refinancing requirements for the second half of 2011 and is an important step in Toll’s ongoing capital management planning.

Toll chief financial officer Brian Kruger was delighted with the result.

“We are very pleased with the outcome of this issue. Not least with the outstanding margin we have achieved. That the offer was significantly oversubscribed is very positive and demonstrates the value of Toll to investors not just in Australia but overseas as well.

“While not rated, the notes were priced at a level consistent with an investment grade profile.

“Entering this market, will help extend the duration of our debt profile as well as diversifying our funding base in a new capital market.”
(Source:www.cargonewsasia.com)