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Big four bank launches $5bn entitlement offer
Two firms have advised on a fully-underwritten pro rata entitlement offer made by the Commonwealth Bank to its shareholders.
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Firms: Ashurst (CBA Equities Limited, Goldman Sachs Australia Pty Ltd, Morgan Stanley Securities Limited, UBS AG Australia Branch); Herbert Smith Freehills (Commonwealth Bank)
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Deal: CBA conducted a pro rata accelerated renounceable entitlement offer (PAITREO), underwritten by Morgan Stanley and UBS AG
Value: $5 billion
Area: Equity capital markets
Key players: Ashurst partner Sarah Dulhunty (pictured) lead the team from Ashurst with senior associate Andrew Kim and lawyer Andrew Johnston.
Deal significance:
The Commonwealth Bank is conducting a 1 for 23 PAITREO with rights trading to raise approximately $5 billion.
The entitlement offer is jointly managed by CBA Equities Limited, Goldman Sachs Australia Pty Ltd, Morgan Stanley Securities Limited and UBS AG Australia Branch.
The offer is fully underwritten by Morgan Stanley Securities Limited and UBS AG Australia Branch.
The $5 billion is to be used in the ongoing funding of CBA business to strengthen its regulatory capital position in light of recent APRA announcements, according to a statement from Ashurst.
CBA is offering entitlements pro rata to all eligible institutional shareholders and eligible retail shareholders which can be exercised to buy new ordinary shares at an offer price of $71.50 per new share, the statement said.
