Refinancing events may be undertaken as either a scheduled or unscheduled event.
A scheduled refinancing event is detailed in the project deed and is scheduled to occur at a specific point in time (expiry of initial finance term).
An unscheduled refinancing event is undertaken on an ad hoc basis for a specific purpose. An unscheduled refinance usually occurs when the private party can take advantage of favourable market conditions. Another common trigger for an unscheduled refinancing is as a result of a 'change in control' of the legal or beneficial ownership of the private party (from the original parties at contract execution) which requires a change to a project's original debt financing arrangements. Changes in control are discussed in Chapter 16 of this guide. Partnerships Victoria projects typically require the private party to seek the government party's prior approval for any change in control. If a refinancing occurs in conjunction with a change in control, the private party must satisfy the contractual approval requirements in relation to both the change in control and the refinancing.