Tabcorp shores up balance sheet with $300 million note strategy

Tabcorp has stepped up its capital management strategy with the issuing of $300 million of unsecured notes.

In a reprise of a strategy the wagering giant last undertook in 2009, it has priced $300 million of 5.5-year notes under a new wholesale Australian Medium Term Note Programme.

It will look to use the additional capital for what was termed “general corporate purposes, including the repayment of drawn debt”.

The notes will mature in May 2031 at a fixed coupon of 5.99 per cent per annum.

“Tabcorp last issued in the AMTN market in 2009 and we are pleased with the very strong interest from investors with our re-entry to this market,” Tabcorp’s chief financial officer, Mark Howell, said.

“The response reflects recognition of the positive changes which have been made across the Tabcorp business over the past 18 months.

“Today’s issuance forms part of our broader capital management strategy, adds further diversity to our funding sources via access to a new capital market, extends the tenor of our weighted average drawn debt maturity to 5.4 years and increases our liquidity to maximise our balance sheet strength.”