[131210.EN.LOG] Toll Seals US Private Deal

MELBOURNE, Victoria-headquartered Toll Holdings has raised US$275 million in debt through US private placement to refinance existing short term debt in Hong Kong and Singapore.

The private placement notes by Australia's largest transportation company were raised for terms of five, seven and 10 years to be converted into Singapore dollars and Hong Kong dollars, 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.

"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," said Toll Group's CFO Brian Kruger.

"While not rated, the notes were priced at a level consistent with an investment grade profile," he said in a company statement. "Entering this market, will help extend the duration of our debt profile as well as diversifying our funding base in a new capital market.

The US Private Placement market is an unrated debt market that offers long term funding from a sophisticated investor base.

Toll has issued a total of $275 million of US Private Placement notes in three tranches - split $100 million for a five year term, $100 million for a seven year term and $75 million for a 10 year term. All of the tranches are priced at 180 basis points over US Treasuries.

Source : HKSG, 13.12.10.