Austal Limited has secured $488 million in new debt facilities to support its $1.2 billion capital expansion in the United States, completing the final funding piece for its shipbuilding and submarine projects.
The funding comes from a group of tier-one banks, including both Australian and international institutions, as well as Export Finance Australia (EFA).
The new arrangement replaces Austal’s existing syndicated facilities and provides improved pricing, longer tenors of five to ten years, and greater financial flexibility.
Austal is currently delivering two major projects in the US: the Final Assembly 2 (FA2) and the Module Manufacturing Facility 3 (MMF3) for submarines. The new funding complements an earlier $220 million capital raise in April 2025 and US$450 million in funding from General Dynamics Electric Boat.
Chief executive Paddy Gregg said the refinancing reflects investor confidence in Austal’s future.
“The successful refinancing of the company’s debt facilities positions Austal for the tremendous growth opportunities ahead,” Gregg said. “Existing and new lenders participated, and better terms and longer tenor were achieved.
“With this capital expansion and working capital funding in place — funded through a combination of debt, equity and cashflow — we can focus on efficient construction of both FA2 and MMF3.”
The deal also includes $634 million in contingent instruments from lenders and other US-based financial institutions to support Austal’s existing $136 million in Go Zone Bonds through letters of credit and guarantees.
Austal will now terminate its previous $280 million syndicated facility agreement, which included a $65 million undrawn loan sublimit.
The company was advised by Barrenjoey and Norton Rose Fulbright.