AUSTAL REFINANCES DEBT FACILITIES TO SUPPORT FUTURE GROWTH

COMPANY ANNOUNCEMENT

27 JUNE 2025

AUSTAL REFINANCES DEBT FACILITIES TO SUPPORT FUTURE GROWTH

Austal Limited (Austal) (ASX: ASB) has completed the final funding piece of its $1.2 billion capital expansion program in the United States, securing $488 million in credit facilities from a group of Tier 1 financial institutions, including Australian and international banks and Export Finance Australia (EFA).

Austal continues to invest in its shipbuilding and submarine capabilities with two major expansion projects currently underway in the USA, the Final Assembly 2 (FA2) project and the submarine Module Manufacturing Facility 3 (MMF3) project.

The new debt facilities will be used alongside Austal’s $220 million capital raise in April 2025 and US$450 million in MMF3 funding from General Dynamics Electric Boat to fund the capital expansion program and provide working capital.

The new debt facilities comprise bilateral arrangements with each lender under a common terms deed, replacing the Company’s existing syndicated facilities which were established in 2015, extended at various stages, and due to mature in April 2026. The new structure delivers better overall pricing, longer tenors (5-10 years), fewer covenants and provides Austal with enhanced financial flexibility and capacity to deliver its $14.5 billion orderbook and pursue growth opportunities.

The Export Finance Australia loan facility for FA2 has been credit approved for up to US$150 million, subject to completion of finance documentation and satisfaction of conditions precedent.

Austal Limited Chief Executive Officer Paddy Gregg said: “The successful refinancing of the Company’s debt facilities positions Austal for the tremendous growth opportunities ahead and reflects Austal’s growth and track record of performance. We received very strong support for this refinancing. Existing and new lenders participated, and better terms and longer tenor were achieved.

“Austal possesses an exceptional pipeline of long-term defence work in the US, which will be complemented by the Strategic Ship Building Agreement in Australia. The Company now has a stronger balance sheet with enhanced liquidity at a lower cost, longer tenor, and with superior flexibility to support this growth. With this capital expansion and working capital funding in place and funded through a combination of debt, equity and cashflow, we can focus on efficient construction of both FA2 and MMF3, the vessels we have been contracted to build, and winning new work.”

In addition, Austal has negotiated $634 million of contingent instruments with several of the credit providers as well as other US-based Tier One financial institutions to backstop Austal’s existing $136 million in Go Zone Bonds through Letters of Credit as well as commercial guarantees where required.

Austal’s existing $280 million Syndicated Facility Agreement, which included a $65 million sublimit available for cash loans (currently nil drawn), will be terminated.

Austal was advised by Barrenjoey and Norton Rose Fulbright.

This ASX announcement has been approved and authorised for release by Austal Limited CEO Paddy Gregg.

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Media Contact:
Cameron Morse, FTI Consulting
+61 433 886 871
cameron.morse@fticonsulting.com