Deal: HSF has advised the joint lead managers of Macquarie Group Limited’s (MGL) offer of Macquarie Group Capital Notes 5 (MCN5). KWM advised MGL.

Value: $725 million.

Area: Finance.

Key players: The Herbert Smith Freehills team was led by partner Philippa Stone, supported by special counsel Rob Finlay, senior associate Michael Burrell and solicitor Jennie Bian.

Deal significance: “MCN5, which will qualify as Eligible Capital for Australian Prudential Regulation Authority purposes, are fully paid, unsecured, subordinated, non-cumulative, convertible, perpetual notes issued by MGL. They were offered at an issue price of A$100 per MCN5,” a statement from HSF said.

“The offer was originally intended to raise A$500 million (with the ability to raise more or less) but was increased to A$550 million following strong support from brokers and institutional investors in the broker firm offer. This was then further increased to A$725 million post the securityholder and reinvestment offers. The proceeds received by MGL under the offer will be used for general corporate funding and capital management purposes.

“Herbert Smith Freehills acted for the nine Joint Lead Managers, being Macquarie Capital (Australia) Limited (who was also the sole arranger), ANZ Securities Limited, Citigroup Global Markets Australia Pty Limited, Commonwealth Bank of Australia, E&P Corporate Advisory Pty Limited, Ord Minnett Limited, Morgans Financial Limited, National Australia Bank Limited, and Westpac Institutional Bank.”

VIEW ALL

Commenting further, HSF lead partner Ms Stone said: “We are delighted to have again acted for the joint lead manager syndicate on another successful Macquarie Notes transaction. This transaction follows our recent role acting for the joint lead managers on the offer of Westpac Capital Notes 7.”