The Transurban Group (ASX: TCL) share price is down around 1% after successfully pricing some debt.
Transurban owns and operates 15 toll roads in Melbourne, Sydney, and the greater Washington area. Revenue growth is derived from traffic growth and their very own rivers of gold – inflation protected toll prices. CityLink in Melbourne is Transurban’s biggest asset, in 2018 this accounted for approximately 32% of their total toll revenue – working out to be about twice the size of the roads in Brisbane.
Transurban’s New Debt
Transurban has priced €350 million in a private placement of senior secured notes. The pricing was completed on 26 June 2019 and settlement is expected to occur on 3 July 2019, subject to the usual closing conditions.
Proceeds from these notes will be swapped into fixed rate Australian dollars and will be used to fund Transurban’s development pipeline and also for ‘general corporate purposes’.
Transurban chief financial officer Adam Watson said: “We are very pleased to be able to complete our inaugural Euro private placement on attractive terms.”
Transurban is one of the most popular defensive businesses on the ASX at the moment, but I think it looks too expensive to buy today. I would much rather buy the reliable ASX shares in the free report below instead.
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