Covenant Brief: InfraBuild $200M Tap 14.5% SSNs Due ‘28; Security, Guarantees, Affiliate Transactions, Indebtedness, Restricted Payments, July Consent Solicitation Amendments Detailed

Following Reorg’s recent Tear Sheet on Infrabuild Australia Pty Ltd, Reorg examined the covenants of the $200 million tap of the original $350 million 14.5% senior secured notes due 2028 issued by the GFG Alliance-owned company. The tear sheet pointed out that InfraBuild’s management anticipates nearly a 40% decline in EBITDA over the next 12 months, alongside ongoing corporate governance issues. On Oct. 14, Moody’s Ratings downgraded InfraBuild’s corporate family rating and the senior secured notes to Caa1 from B3, with a negative outlook. The downgrade followed a covenant waiver on its Asset Backed Term Loan Facility in August 2024 and late-stage discussions with lenders regarding covenant amendments. This covenant brief reviews provisions concerning credit support, leverage, value leakage, asset sales, events of default, change of control, and affiliate transactions. It also outlines key changes from a July 2024 consent solicitation, which preceded the $200 million tap in August 2024.     Click HERE for the full PDF report