Qube Holdings Limited (ASX:QUB) Prices $600 Million Senior Unsecured Notes

Successful Issuance

Qube Holdings Limited (ASX:QUB) has announced the successful pricing of $600 million in senior unsecured fixed-rate medium-term notes. The deal includes $350 million in seven-year notes and $250 million in ten-year notes.

Yield and Terms

The seven-year notes are priced at a yield of approximately 5.65%, while the ten-year notes carry a yield of about 6.02%. These yields represent credit spreads of 155 and 175 basis points, respectively, over the relevant Australian dollar swap rates.

Executive Comments

Mark Wratten, Chief Financial Officer of Qube, expressed satisfaction with the outcome, stating, “We are delighted with the outcome of Qube’s inaugural AMTN issue, which reflects the quality, diversity and resilience of Qube’s business.” He noted the significant oversubscription and broad participation from both domestic and international investors.

Proceeds and Use

The settlement of the notes is expected on December 11, 2024, pending standard conditions. The proceeds will be utilized to repay existing bank facilities, diversifying the company’s funding sources and extending the maturity profile of its debt, while maintaining liquidity for future growth opportunities.

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Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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