The company said the new loan facility would ensure that its loan portfolio is balanced between bank and capital market facilities. It would also ensure that the spread of maturities reflects the Group's long-term investments in gas distribution infrastructure.
Envestra also told the market that agreements have been signed with five financial institutions to provide $25 million of subordinated debt - in the form of medium terms notes - to assist with the repayment of $100 million of convertible notes due to mature on 30 September.
The funding was arranged by Grange Securities and follows the $83 million equity raising in April, part of which would also be used to repay maturing convertible notes.
"Considerable interest has been displayed by a range of fund managers and other financial institutions in support of Envestra's mezzanine debt program," a company spokesman said.
The $25 million of medium term notes has a long-term BBB-investment grade rating by Standard & Poor's. The four year floating bonds carry an interest rate of 275 points over BBSY and would be unlisted, Envestra told the market.
