May 2019.
Sydney, Australia – Palisade Investment Partners (Palisade) is pleased to announce the successful refinancing of a $76 million, 8 year debt facility for the Tasmanian Gas Pipeline (TGP).
The debt facility was amended and extended with Commonwealth Bank of Australia (CBA) as sole lender. The refinancing comes after TGP recontracted a number of key Gas Transportation Agreements (GTAs) during 2018, including with HydroTasmania (for both the Tamar Valley Power Station and industrial customers) and TasGasRetail.
Palisade Integrated Management Services (PIMS) assumed business management responsibilities in 2015, and since then have reduced the operating cost base of TGP, while continuing to enhance TGP’s long-term value and operational risk profile through the addition of gas storage capabilities and a range of proactive risk management initiatives.
Palisade Executive Director Vicki Rigg said: “The refinancing represents a significant achievement for TGP and a natural next step for the asset following the recontracting of key GTAs and previous value enhancing activities implemented by Palisade and PIMS. The facility further de-risks TGP’s capital structure, while at the same time achieving attractive pricing and terms for investors.”
TGP was advised by Royal Bank of Canada (RBC) and King & Wood Mallesons (KWM), while CBA was advised by Allens.
The transaction is a successful example of Palisade’s active approach to managing refinancing risk through its treasury risk management framework, which seeks diversity of funding tenor and source across its portfolio, enhancing risk adjusted returns to investors.
TGP joins other Palisade managed assets that have been recently refinanced in line with this strategy such as the Biosciences Research Centre PPP which implemented a 17 year senior debt facility, the 11.5 year debt facility for Waterloo Wind Farm, and the 13.75 year debt facility for Hallett 1 Wind Farm, all at highly attractive pricing and terms.
Palisade’s Diversified Infrastructure Fund (PDIF) has provided investors with a total return of 13.1% p.a., including 8.3% p.a. of income before fees over the five years to March 2019.
For further information, please contact:
Simon Parbery
Investment Director
Palisade Investment Partners
Ph: +61 2 8970 7811
simon.parbery@palisadepartners.com.au
James Ward
Investment Director
Palisade Investment Partners
Ph: +61 2 8970 7814
james.ward@palisadepartners.com.au
About the Tasmanian Gas Pipeline
The Tasmanian Gas Pipeline is a 740km subsea and onshore gas pipeline system, that transports natural gas from Victoria to Tasmania. It is Tasmania’s only source of natural gas and a key component of Tasmania’s energy security by supplying gas to the Tamar Valley Power Station, as well as supporting jobs in the state by supplying gas to a dozen key industrial users as well as the broader Tas Gas Networks pipeline system. PIMS is responsible for business management activities, while Zinfra are responsible for conducting operation and maintenance works on the pipeline. Palisade manages 100% of the project.
About Palisade Investment Partners
Palisade is a specialist, independent infrastructure manager that provides institutional investors with access to Australian infrastructure projects through tailored portfolios and co-mingled funds. Palisade’s multi-disciplinary and experienced team focuses on attractive mid-market assets that are essential to the efficient functioning of the communities and economies they serve.
For further information, visit: https://palisadepartners.com.au/