Firms: DLA Piper (Transfield Services); King & Wood Mallesons (Joint lead arranger for a conglomerate of financial institutions); Sidley Austin (US counsel to Transfield); Latham & Watkins (US counsel to the initial note purchasers)
Deal: Transfield Services global refinancing
Value: $US325 million
Area: Capital markets
Key players: Partners Bill Glover (pictured) and Hugo Thistlewood led the DLA team. Glover acted on the issue and sale of US$325 million senior unsecured guaranteed notes in the United States and international capital markets, while Thistlewood led the team that advised Transfield Services on its approximately $400 million of senior secured syndicated bank facilities in various currencies. KWM partners Yuen-Yee Cho and Richard Hayes led the global firm’s team, with assistance from senior associate Lynton Hogan and associate Duncan McKay. The financial institutions that KWM acted for included Bank of America Merrill Lynch, HSBC, Mitsubishi UFJ Securities and Wells Fargo Securities. “The US High Yield space is becoming increasingly important for Australian corporates who are looking to tap alternative sources of funding with liquidity and tenor,” said Hayes
Deal Significance: The bond issuance formed part of a broader debt restructuring undertaken by Transfield Services. Prior to the notes issue, Transfield had reduced capital expenditure and introduced a salary freeze. “DLA Piper is proud to have assisted Transfield Services in executing its debt refinancing strategy and in achieving a major restructure of its financing arrangements in both the loan markets and the international capital markets,” said Glover. Transfield was at the centre of controversy in March when Luca Belgiorno-Nettis, an executive director with Transfield Holdings, stood down from chairing Sydney’s Biennale after artists withdrew from the event due to Transfield Holding’s winning of a government contract to supply facilities at the Manus Island detention centre. Transfield Holdings has shares in Transfield Services.