Gresham-owned mining contractor refinances $485m in debt
Barminco Holdings, an Australian mining contractor owned by Gresham Private Equity, has refinanced its debt through a $485 million senior note offering. The offering was oversubscribed, allowing the company to upsize the Australian dollar value to take advantage of recent currency movements.
The Australian dollar opened below $0.99 today for the first time in 11 months after the government announced an A$18 billion ($17.8 billion) budget deficit, promoting traders to bet on further interest rate cuts. The most recent rate cut - there have been seven since November 2011 as part of efforts to stimulate non-mining industries - took place last week. It caught the market by surprise, causing the Australian dollar to drop 0.8% against the US dollar.
The notes have a five-year term and a coupon of 9%. Barminco said the facility would provide it with a simplified, long-term debt structure and replace existing secured senior bank syndicate, subordinated debt and mezzanine facilities.
In addition to the notes, Barminco has secured additional Australian facilities to support future growth in domestic and international markets.
Gresham acquired a majority stake in Barminco in 2007, paying A$200 million (then $174 million). Goldman Sachs invested $50 million in the company four years later. Later the same year, Barminco pulled the plug on a planned IPO due to weak market conditions.
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