• Market conditions – Continued volatility with mounting pressure for RBA action in 2019.
• Australian bank debt market – refinances comprise majority of volume with average transaction size the largest since Q2 2015.
• Offshore bank debt funding – strong appetite for Australian corporate debt from offshore banks – in particular Asian-based banks.
• Australian domestic bond market – quietest Q1 period since 2016, partly attributable to the influx of private debt capital allowing borrowers to directly access capital long-term debt capital markets investors.
• USPP – marginally higher recent volumes from Australia and NZ, however remains lower than prior 12 months.

Notable syndicated transactions for the quarter included:

• Amcor Ltd refinanced US$4.5 billion ahead of its proposed merger with the US-based Bemis Co. over tenors of 3, 4 and 5 years.
• Qantas Airways Ltd increased its three tranche refinancing to A$1.33 billion from the original A$1.18 billion under a general syndication involving 36 banks. Pricing ranged from 105 to 115 basis points with the revolving debt facility basing margins on the company’s Moody’s corporate credit rating of Baa2.
• Metcash Trading Ltd went to market for a multi-tranche facility comprising tenors of 3, 4 and 5 years with margins tied to their senior leverage grid. Initial margins for the facilities are 145, 160 and 175 basis points respectively.
• IX Infrastructure Pty Ltd, a special purpose vehicle of Keppel Infrastructure Trust, has raised $607 million to assist with the acquisition of Ixom Group, which is a leading infrastructure group in Australia and New Zealand.
• Canadian investment firm Brookfield Capital Partners’ is seeking to raise A$2.15 billion as part of its planned $4.35 billion acquisition of Healthscope Limited via its SPV, VIG Bidco Pty Ltd. Seven underwriting banks are seeking commitments from banks after launching a senior syndication in early March with initial talk on margins of 400 bps.