Aurizon Considers Rail Network Stake Sale

Brisbane-based Aurizon, the country’s largest rail-freight operator, said Monday it had held talks with “a limited number” of potential investors over the possible sale of a minority stake in Aurizon Network, the business which houses its regional rail network.

“There is currently no transaction and there can be no guarantee as to the terms or timing of any minority issue or that it will eventuate,” Aurizon said in a statement.

Aurizon flagged the potential sale as it also announced plans to change its “long-term capital structure” to help diversify funding sources.

The company will line up new committed debt facilities worth 3.00 billion Australian dollars (US$3.01 billion) for its Aurizon Network arm. About A$2.20 billion would be drawn down initially, it said, with the remainder set aside to fund projects such as its Wiggins Island rail development in Queensland state.

New debt facilities worth A$600 million would also be established at group level through the company’s finance vehicle Aurizon Finance Pty Ltd., the firm said. The new debt facilities are expected to be in place by the end of next month.

Chief Executive Lance Hockridge said the planned new capital structure replaced a “short-term vanilla debt structure” that Aurizon has had since listing on the stock exchange in 2010.

Aurizon Rail Network

Source : Fox Bussines

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