Macquarie Communications Infrastructure Group (MCG), owner of transmission company Broadcast Australia, has increased its bank financing from $150m to $390m so that it can roll out more transmitters for ABC and SBS.

ABC Radio is currently expanding its News Radio network to new regional areas, and other transmission infrastructure for ABC and SBS is also being upgraded.

The existing capital expenditure facility of $125m has been increased to $240m. The working capital facility will be increased from $25m to $50m and is expected to fund Broadcast Australia’s other growth initiatives.

In addition, the bank facility has capacity for a $100m term loan, which will provide Broadcast Australia and MCG “funding flexibility.”

The new facilities have been successfully syndicated to six banks including National Australia Bank, Commonwealth Bank of Australia, Australia and New Zealand Banking Group Limited, Barclays Bank PLC (Australian Branch), Calyon Australia Limited, and The Toronto-Dominion Bank (Australian Branch).

Moody’s and S&P have assigned preliminary ratings to the $390m new bank facilities of Baa2 (stable) and BBB (stable) respectively, in line with existing ratings, “reflecting the strong operating performance of Broadcast Australia.”