#Senior Notes #Tender Offer #Australia #Sydney #APA Group

APA Infrastructure Announces Cash Tender Offer for Senior Notes Due 2027

On September 2, 2025, APA Infrastructure Limited, a prominent Australian corporation and a subsidiary of APA Group Limited, disclosed its commencement of a cash tender offer aimed at purchasing up to $425 million of its 4.25% Senior Guaranteed Notes maturing in 2027. This announcement underscores the company’s commitment to effectively managing its debt portfolio.

Understanding the Tender Offer

The cash tender offer allows bondholders to sell their securities back to the company for cash, enhancing the management of APA’s existing debt obligations. This initiative serves to provide the company with a more flexible financial structure and demonstrates proactive engagement with debt holders.

The method and conditions of this tender offer are articulated in the 'Offer to Purchase' document, dated the same day as the announcement. Interested bondholders are encouraged to access this document online for comprehensive details about the terms and conditions influencing this offer.

Specifics of the Notes Set for Purchase

The notes eligible for this tender offer have a CUSIP number of 00205GAD9 and a significant principal amount of $850 million outstanding. The offer specifically targets 4.25% Senior Guaranteed Notes scheduled for maturity on July 15, 2027, with the First Par Call Date set for April 15, 2027. The early tender premium for those participating will provide an attractive incentive to bondholders who decide to tender early, as it offers an additional $30 per $1,000 in principal amount.

Tender Offer Timeline

The tender offer will close at 5:00 PM New York City time on September 30, 2025, unless it sees an extension. For bondholders wishing to receive the early tender premium, securities must be validly tendered by 5:00 PM on September 15, 2025. Crucially, those who do not meet this early deadline will not qualify for the premium, indicating the importance of timely action for interested parties.

Additionally, the settlement dates vary based on when securities are tendered. Securities correctly submitted by the early tender deadline are expected to settle by September 18, 2025, while those submitted thereafter but before the expiration deadline are set for final settlement by October 2, 2025.

Rationale Behind the Offer

The primary motivation for this cash tender offer lies in the company’s strategic goal of optimizing its existing debt structure. APA Infrastructure Limited plans to use cash reserves and existing credit facilities to finance the purchase of the securities. By buying back these notes, the company aims to cancel them, thus decreasing its overall debt burden.

The Role of Dealer Managers

Merrill Lynch International and The Hongkong and Shanghai Banking Corporation Limited have been appointed as dealer managers to assist in navigating this tender offer process. Furthermore, Global Bondholder Services Corporation will serve as the Information and Tender Agent, providing comprehensive support to any inquiries related to the tender offer.

Conclusion

The announcement by APA Infrastructure Limited marks a critical step in their ongoing efforts to enhance financial liquidity and manage liabilities effectively. For bondholders and investors, there’s a narrow window to make a decision regarding the tender offer, making immediate attention to the details vital to maximize their returns. As always, prospective participants are encouraged to consult with their financial advisors before making commitments in this evolving financial landscape.