Already a subscriber?Kinetic Group, one of the largest non-government-owned bus operators across Australia, New Zealand and the United Kingdom, has made a pit stop in the debt markets on the way to its final destination – a capital partner search.Street Talk understands Kinetic has finalised a $1.6 billion refinancing, spread across three-year and five-year facilities, and Australian dollar and NZ dollar tranches.
Of note, Kinetic will bid farewell to more expensive, leveraged buyout-style debt in lieu of an infrastructure-style deal that would lower the group’s financing costs. It is expected to be pitched as a geographically and operationally diverse platform, supported by long-term contracts with high-quality government and infrastructure counterparties. In particular, potential buyers have pointed to the company’s exposure to critical public infrastructure, delivering high barriers to entry and defensive earnings.