Amcor (AMC) is seeking to refinance a $740 million debt facility and to set up a new, larger one for the spin off of its Australian business, reports Bloomberg.
The packaging company wants the existing loan, which expires in December this year, to be extended for three more years, said two people familiar with the matter, according to Bloomberg.
Amcor wants the larger facility to hold maturities between three and five years, with the capital being used to fund the demerger of its Amcor Australasia &Packaging Distribution (AAPD) unit, the people told Bloomberg, who asked not to be identified because the matter was private.
Many Australian corporations are now choosing to refinance their debt amid record low global interest rates, with many analysts believing this is the bottom of the cycle.
In August Amcor announced to the Australian Securities Exchange it was demerging its Australian segment to be listed as its own entity, saying the move will "allow each company to better pursue their own growth agendas and strategic priorities".
Amcor specialises in flexibles and rigid plastics segments globally, while AAPD operates in the fibre, glass and beverage can packaging markets in Australasia and packaging distribution in North America and Australia.