APA Group (ASX:APA), a leading Australian Securities Exchange listed energy infrastructure business, has announced the successful completion of the amendment and extension of $1.75 billion of its existing syndicated loans. As Australia’s energy infrastructure partner, APA owns and manages a diverse, $27 billion portfolio of gas, electricity, solar, and wind assets. The company delivers around half of the nation’s domestic gas through 15,000 kilometres of gas pipelines.
Prior to this amendment, the syndicated loan maturities were structured as $500 million due in May 2027, $500 million in May 2029, and $750 million in October 2030. These have now been extended to new maturities of $1.0 billion in July 2031 and $750 million in July 2032. APA Group confirmed that no incremental new debt was issued as part of this transaction.
The pricing on the newly extended loans is marginally lower on average than the existing loans over their lifespan. The existing fixed-rate interest rate hedges remain in place, fixing the all-in cost of debt for the extended term. APA Group anticipates that the average cost of debt across its entire portfolio will not materially change from the 5.1% reported in the FY25 Half Year Results.
Garrick Rollason, APA Chief Financial Officer, stated that the successful amendment and extension proactively addresses future debt maturities at attractive pricing levels, reflecting a strong focus on capital management. He also noted that APA is well-positioned to manage its refinancing requirements, with the next debt maturity not until March 2027.
