April 27, 2019

GWA mandates MacCap for funds

Genesee & Wyoming Australia (GWA) has tapped Macquarie Capital (MacCap) as financial advisor as the coal transporter seeks AUD1 billion ($700 million) from local and international lenders to refinance debt.

GWA’s existing debt includes a AUD690 million bank debt funding package that was lined up in 2016 when US-listed parent Genesee & Wyoming agreed on a AUD1.14 billion deal to acquire Glencore’s coal haulage business.

The bank debt deal partly funded the GRail acquisition, while the rest of the funds mostly came from Macquarie Group’s asset manager Macquarie Infrastructure and Real Assets (Mira).

Mira acquired a 48.9% stake in Genesee & Wyoming’s wider Australian business, now referred to as GWA.

The debt was lined up at the GWA level — with no recourse to either the US parent or Mira.

GWA is now seeking to refinance the AUD690 million loan, and could up the financing towards AUD1 billion.

GWA is expected to seek improved pricing and terms from banks. GWA’s 2016 deal was locked in at 290bp above the bank bill swap bid rate and was due to mature in 2021.

While Genesee & Wyoming retains the lion’s share of GWA, partner Mira gets a say on matters relating to the joint venture’s capital structure.

Macquarie Capital advised Mira on the GWA stake acquisition in 2016.