find the latest legal job
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Insurance Lawyer (1 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Great Career Opportunity ·
View details
Insurance and Health Lawyer (1-4 PAE)
Category: Insurance and Superannuation Law | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· New position to support Growth ·
View details
Financing breaks new ground for market

Financing breaks new ground for market

Richard Hayes

A slew of firms have acted on financing a joint venture between Australia’s Leighton Holdings and a US private equity firm, which features the first Term Loan B facility in Australian dollars.

Firms: King & Wood Mallesons (Australian counsel to Barclays); Corrs Chambers Westgarth (Apollo); Herbert Smith Freehills (Leighton Holdings, now known as CIMIC); Cahill (US counsel to Barclays); Paul Weiss (US counsel for Apollo).

Deal: The A$900 million financing of a joint venture between Australia’s Leighton Holdings (now known as CIMIC) and US private equity firm Apollo Global Management.

Value: A$900 million, including a seven-year senior secured Term Loan B (TLB) facility split into a US$350 million tranche and a A$359 million tranche, together with an A$100 million revolver with a five-year term.

Area: Finance

Key players: KWM, which advised Barclays (lead arranger), was led by banking and finance partner Richard Hayes (pictured), assisted by senior associate Alastair Gourlay and lawyer John Arthur. The banking and finance team was assisted by corporate partner Lee Horan and tax partner Scott Heezen.

Partners from Corrs and HSF also acted on the deal.

Deal significance: The deal is the first Australian dollar-denominated TLB financing. The joint venture company and borrower, LS Newco, was spun out of Leightons earlier this year and provides services to telecom, infrastructure, environment and energy distribution and transmission sectors, principally in Australia. 

Investors included Australian superannuation funds and debt funds.

Commenting on the deal, KWM partner, Richard Hayes, said: “The success of the deal can be attributed, at least in part, to the growing pool of superannuation funds and other investors looking for attractive, risk-adjusted returns and the ongoing disintermediation of the financial markets in Australia.”

“It is great news for the market that Australian borrowers and the portfolio companies of domestic and international private equity firms can now access an AUD TLB market without having to incur the cost of expensive AUD-USD cross-currency swaps.

“We anticipate that this may become the new financing solution of choice for many, particularly when compared with the quarterly maintenance covenant regime typically imposed by the traditional Australian bank debt market.”

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Financing breaks new ground for market
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Please, Continue (Hamlet), Melbourne Festival
Oct 16 2017
Hamlet suffers slings and arrows of top Victorian barristers
Victorian judges and barristers have performed the unique play Please, Continue (Hamlet) at the Melb...
Julian Assange
Oct 13 2017
When justice fails, according to Assange
WikiLeaks founder Julian Assange has dismissed the capacity of judicial systems to deal with complex...
Aussie anti-terrorism laws, detention of 10-year-olds
Oct 13 2017
Treatment of kids under Aussie anti-terrorism laws an over-reach: ABA
The Australian Bar Association has urged the government to reconsider proposed reforms to Australian...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...