WATPAC CHARGES AHEAD WITH NEW $170M BANK FACILITY
Written on the 1 December 2016
WATPAC (ASX:WTP) has finalised a new $170 million syndicated banking facility to tackle multiple large-scale projects.
The Brisbane-based developer has secured bank guarantees with Bank of Queensland (ASX:BOQ), BNP Paribas, Commonwealth Bank of Australia (ASX:CBA) and HSBC.
The new arrangement is a $50 million increase in Watpac's bank guarantee issuing capacity, extends the group's facilities maturity profile and offers improved terms and conditions.
Watpac managing director Martin Monro says the enhanced facility enables the group to provide the requisite project security on large-scale projects.
The company has been recently named as preferred builder for the first stage of the $1.1 billion Herston Quarter project in Brisbane.
"The new arrangements enhance the group's ability to deliver multiple large-scale projects while continuing to target projects that have high barriers to entry including significant social infrastructure contracts," Monro says.
Together with surety bond facilities totalling $245 million, which are currently drawn to $119 million, the group has 'substantial available capacity' across its performance security facilities.
HSBC acted as Mandated Lead Arranger and Bookranger for the new facility, with CBA selected as syndicate agent and security trustee, and the group's incoming transactional banker.
"Watpac has worked with three of the four banks - HSBC, BOQ and BNP Paribas - for several years in our most recent facility and those relationships are now well developed," Monro says.
"The arrival of CBA into the new facility is extremely welcome and also brings with it the opportunity to upgrade the transactional banking platform."
Watpac has a project pipeline of almost $3 billion nationally, including Brisbane's $188 million Mary Lane project and Sydney's $123 million York & George mixed-use development.