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Australian Unity bond offer to raise $200m

Australian Unity bond offer to raise $200m

Brendan Groves, Clayton Utz

Two firms have advised on the first capital raising to take advantage of the new ‘simple corporate bonds’ legislation.

Firms: King & Wood Mallesons (Australian Unity); Clayton Utz (Evans and Partners, NAB and ANZ)

Deal: Australian Unity is offering Series B Australian Unity Bonds to raise approximately $200 million.

Value: $200 million

Area: Capital raising

Key players: The KWM team was led by partners Shannon Finch and Ian Paterson, who had assistance from senior associates Anthony Boogert, Jo Dodd and Hoda Nahlous, as well as law graduate Melanie Gilbert.

The Clayton Utz team was led by corporate partner Brendan Groves (pictured), with assistance from senior associate Warrick Louey and lawyers Kate Allison and Craig McDermaid.

Deal significance: Australian Unity is a national healthcare, financial services and retirement living organisation providing services to around 850,000 customers, including 300,000 members nationwide.

Australian Unity announced its offer of Series B Australian Unity Bonds to the market on 9 November, to raise approximately $200 million.

The offer is the first in Australia under the simple corporate bonds regime introduced in 2014.

Under the offer, Australian Unity is offering interest-paying, unsubordinated and unsecured bonds with a face value of $100 each, which mature on 15 December 2020. The bonds are expected to be listed on the ASX from mid-December.

Evans and Partners and NAB were joint arrangers and joint lead managers, and ANZ was also a joint lead manager to the offer.

Clayton Utz lead partner Brendan Groves said: “It's pleasing to see this first offer of simple corporate bonds under the new legislative regime, which we believe provides issuers with a more streamlined and cost-effective avenue to raising funds.”

He continued: “We anticipate that the market may consider further offers under the simple corporate bonds regime, which allows issuers to diversify their funding options as a supplement to traditional equity raisings and bank debt.”

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