Tabcorp secured a $1.4 billion debt note

The Australian company confirmed that it secured a billionaire long-term debt note from private investors.

Australia,- Tabcorp Holdings confirmed that it obtained a US$1.4 billion long-term debt note from private investors from the United States. The company said that the debt bond financing will be destined to enlarged operations after the secured merger with Tatts Group, which was approved a few months ago. The notes are expected to be issued in June.

Tabcorp said that the debt note consists of four US-dollar-denominated tranches, totalling US$1.25 billion and two Australian-dollar-denominated tranches, totalling A$195 million (US$150.13 million). The proceeds will be used to repay a billionaire bridge finance facility in connection with the merger with Tatts Group and to repay existing bank debt.

“The successful debt raising is a positive endorsement of Tabcorp by investors in the U.S. private placement market and has extended Tabcorp’s debt maturity profile,” CFO Damien Johnston said.