The Joint Lead Arrangers for WMC Limited ("WMC") announced today the successful completion of a US$1.1 billion bank financing for the proposed demerger of WMC Resources Limited ("WMC Resources"). The financing has been oversubscribed and so well received by banks that the Joint Lead Arrangers have elected to cancel the general syndication.
Commonwealth Bank Head of Global Loan Products, George Confos, said “the universal appeal of the offering was driven by the fact that the transaction represented a rare opportunity for banks to gain exposure to WMC Resources’ quality asset base through a well structured syndicated bank debt facility”.
Deutsche Bank Director, Peter Field, said "the success of the financing reflects the underlying strength of the WMC Resources credit profile and the high regard it is held in the banking arena."
JPMorgan’s Head of Debt Capital Markets, Jason Lee, added “the success of this deal suggests that the market, in both Australia and overseas, continues to have a healthy appetite for good quality stock such as WMC Resources”.
Westpac's Head of Loans & Syndications, Andrew McDonald, said "the overwhelming success of this inaugural financing for WMC Resources lays solid foundations for its future capital raisings".
The US$1.1 billion financing, which will serve to refinance the majority of WMC's existing debt, was arranged and underwritten by Commonwealth Bank of Australia, Deutsche Bank, JPMorgan Chase, and Westpac Institutional Bank (the "Joint Lead Arrangers"). It comprises a US$600 million 364-day and 3 year Dual Currency Syndicated Revolving Loan Note Facility, and a US$500 million 364-day Term Facility.
The proposed demerger will result in two independently listed companies, Alumina Limited which will hold WMC’s 40% interest in AWAC and WMC Resources in which WMC’s 100% owned businesses, being principally Nickel, Olympic Dam, Fertilizer and Exploration and Development Projects, will be held.
WMC and the Joint Lead Arrangers launched the sub-underwriting phase of the US$600 million syndicated facility on 9 October 2002, to a number of major Australian and international banks.
WMC's Chief Financial Officer, Bruce Brook said "We are very happy with the result. It is particularly pleasing to see our credit profile endorsed by so many institutions - from Australia to Asia, Europe and the United States."
Media contacts:
| Commonwealth Bank of Australia | JPMorgan |
| Bryan Fitzgerald | Eugenie Perks |
| 9378 2663 | 9220 3125 |
| |
| Deutsche Bank | Westpac Institutional Bank |
| Kate Abrahams | Liz McGrath |
| 9258 2416 | 9284 8221 |
