InfraBuild bond holders provide an additional US$150 million in funding   

InfraBuild has finalised its transaction seeking consent from its bond holders, with a significant majority of notes holders voting in favour of providing greater flexibility and liquidity for the company. 

The outcome of the transaction allows InfraBuild to withstand the current market downturn and invest in growth and innovation, positioning InfraBuild as Australia’s leading sustainable steel company and a key partner to the country’s building, construction and engineering industries. 

A majority of bond holders have supported the transaction that provides: 

• an additional US$150 million notes issued under the existing bond holders’ agreement to prepay outstanding amounts under the syndicated facility agreement (ABL), originally dated as of May 26, 2023. Once the ABL has been prepaid in full, the notes will be secured on substantially all assets of the issuer and the guarantors on a first lien priority basis; 
• the return to InfraBuild’s balance sheet the escrow funds raised through the ABTL financing, bolstering the company’s free cash position to over AU$700 million pro forma to 31 March 2025; 
• an initial extension for the delivery of InfraBuild’s audited FY24 financial statements by May 31, 2025; and 
• strengthened governance, enhanced transparency and a fortified ringfence around InfraBuild. 

The transaction represents the confidence of bond holders in InfraBuild’s growth plans and opportunities. The bolstering of the company’s balance sheet will allow for strategic investments to grow InfraBuild’s market position and development of sustainability-driven innovations. 

Following significant contributions to the business, Monica Middleton and Sandip Biswas have stepped down from the InfraBuild board. Both Monica and Sandip leave the board having made positive and lasting impacts benefiting InfraBuild into the future. New board appointments will be announced shortly.

As Australia’s only fully integrated electric arc furnace steelmaker, incorporating scrap metal recycling, long steel manufacturing, and downstream distribution and processing, InfraBuild provides steel that is essential for residential, commercial and major infrastructure developments nationwide.  

Francisco Irazusta, InfraBuild Chief Executive said: 

“InfraBuild is a strong and resilient business with these changes agreed to by bond holders providing the company with a robust cash position allowing us to operate efficiently through these current tough market conditions. 

“With the financial surety of this transaction, InfraBuild can continue its work supporting the building of Australia with sustainable steel made in this country, while investing in growing our business using new technology and innovation to deliver the very best products and services for our customers. 

“I’d like to thank both Monica and Sandip for their leadership, commitment, and their thoughtful perspective that has contributed to a positive impact on InfraBuild during a period of both growth and change at the company,” Mr Irazusta said. 

A spokesperson representing a sub-set of the Bond Holders has said:

“We are pleased to have supported InfraBuild through the successful completion of this important capital raise and debt amendment process. The result of these comprehensive transactions is a win-win for both InfraBuild and its stakeholders.

Bondholders benefit from an even more robust credit with enhanced governance processes and a new first lien position on the company’s working capital and highly strategic production facilities.

Now strengthened with a significant boost in liquidity, we have the utmost confidence in the shareholder and management to guide InfraBuild through this period of heightened market volatility and that the business will emerge even stronger as the market recovers.”