Suncorp raises capital, resells CPS3 notes
KWM has advised Suncorp with its $194 million resale and conversion of CPS3.
Firms: King & Wood Mallesons (Suncorp).
Deal: King & Wood Mallesons (KWM) has advised Suncorp Group Limited (Suncorp) on the resale and conversion of its remaining $194 million of convertible preference shares (CPS3) which remained on issue following the CPS3 reinvestment offer as part of Suncorp’s Capital Notes 3.
Value: $194 million.
Area: Private equity.
Key players: The KWM team advising on the transaction was led by partners Ian Paterson and Rhys Casey, senior associates Andrew Fei and Matt McKeown and solicitor Jordan Osrin.
Deal significance: On 11 November 2019, the group launched a new capital notes offer to raise $250 million through the offer of Suncorp Capital Notes 3.
The latest notes would be mandatorily convertible, unsecured, fully paid and subordinated. Distributions on Capital Notes 3 would be on a floating rate, discretionary, non-cumulative, expected to be fully franked with a quarterly payment.
The transaction is one of only a handful of tier 1 regulatory capital managed resale and conversion transactions and the first to be completed without a concurrent replacement instrument offering.
KWM is a leading adviser in hybrid securities and has a longstanding relationship with Suncorp, having acted on all of its tier 1 regulatory capital raisings since 2012.