Atlas Arteria, an Australian toll road operator, has successfully raised $US325 million ($495 million AUD) through a private placement in the United States. The funds are earmarked for debt repayment, strengthening the company’s financial position. Atlas Arteria owns and operates toll roads in Australia, Europe and North America. The company generates revenue from the fees paid by drivers to use these roads.
The offering was split into two tranches. The larger portion, a $US225 million tranche, has a 12-year term and carries a coupon rate of 5.51 per cent. This is equivalent to 145 basis points above the 10-year US Treasury yield. The second tranche, valued at $US100 million, extends over a 15-year period and features a coupon of 5.66 per cent, which is 160 basis points over the benchmark 10-year US Treasury yield.
This strategic financial manoeuvre allows Atlas Arteria to take advantage of favourable market conditions in the US private placement market. By securing these funds, the company bolsters its balance sheet and gains increased financial flexibility. The successful placement demonstrates investor confidence in Atlas Arteria’s business model and long-term prospects.
