Nov. 3 (Bloomberg) -- APA Group, which owns and operates gas pipelines in Australia, agreed to A$1.45 billion ($1.5 billion) of loans to refinance existing debt.
The facilities are evenly split between loans maturing in 2013, 2014 and 2015, the Sydney-based company said in a stock exchange filing. The debt was provided by 15 banks and will refinance borrowings due in June 2012 and July 2013, according to the statement.
“We received close to three times the commitment we originally sought, and at very compelling pricing when considering the volatility that exists in debt capital markets globally,” APA Chief Financial Officer Peter Fredricson said in the statement.
APA hired BNP Paribas SA and Royal Bank of Scotland Group Plc to help it arrange meetings with U.K. debt investors in September, two people with knowledge of the matter said at the time.
While the pipeline company considered selling bonds to help refinance its debt, terms available in the bank loan market were more attractive, APA said today.
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