Austin Engineering (ASX: ANG) has secured new principal banking facilities totalling $155 million that together with its recent $30 million placement and pending share purchase plan will provide funding certainty for its business expansion.
The company is acquiring Chile’s Servigrut, an Antofagasta-based supplier of heavy equipment lifting, transportation and site services to the mining and industrial markets in the country, for US$21 million.
Its services are complementary to those provided by Austin’s similar business in Calama and the acquisition will enable Austin to become the major provider of such services throughout the region.
The new three-year facilities include a $95 million cash facility to refinance existing bank debt, a $40 million acquisition facility to facilitate future business expansion initiatives and a $20 million revolving multi-option facility for working capital purposes.
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