Firms: King & Wood Mallesons (National Australia Bank); Herbert Smith Freehills (JLM)
Deal: Tier 1 hybrid security known as NAB Convertible Preference Shares (NAB CPS)
Value: The offer is to raise $750 million, with the ability to raise more or less
Key players: The KWM team was led by M&A partner Diana Nicholson (pictured) and banking partner Ian Paterson, supported by senior associate Pola Collins and solicitor David Bryant. HSF acted for the joint lead managers: NAB Wholesale, a division of National Australia Bank; J.P. Morgan; RBS Morgans; Evans & Partners; Commonwealth Bank of Australia; UBS and Deutsche Bank. The HSF team was led by Philippa Stone, partner and co-head of capital markets, working with executive counsel Lauren Magraith and solicitor Charlotte Cameron
Deal significance: NAB CPS are fully-paid preference shares issued directly by NAB, and will pay a discretionary, quarterly, floating rate, non-cumulative dividend.
NAB CPS are being offered with an issue price of $100 each to raise approximately $750 million, with the ability to raise more or less. NAB CPS are expected to be quoted on the ASX.
“NAB is now the third major bank to offer hybrid securities to the retail market that meet APRA’s new Basel III prudential standards that were released in 2012,” said Stone.