Firms: Herbert Smith Freehills (Civic Nexus Finance Pty Ltd); Gilbert + Tobin (investors); Chapman and Cutler (US counsel to the investors)
Deal: Civic Nexus Finance has made a US private placement of senior secured notes due in 2032 for Melbourne’s Southern Cross station.
Value: US$202 million
Area: Banking and Finance
Key players: Partners Josh Sgro and Gerard Pike (pictured) led the HSF team, which acted as US and Australian counsel to Civic Nexus.
They were supported by senior associates Amanda Osuchowski and Miles Wadley. Laura Sheridan Mouton, head of US capital markets – Australia, served as US counsel, with support from senior US associate Jin Kong and solicitor Anna McEwen.
Partner Jinny Chaimungkalanont advised on stamp duty matters and Greenwoods & Herbert Smith Freehills director Andrew Hirst advised on Australian tax aspects.
Deal significance: Civic Nexus own Southern Cross Station including the concession to operate it from Public Transport Victoria. Civic Nexus Finance is their financial subsidiary that holds and manages the financing of the station.
The proceeds of the notes were used to refinance a bank facility entered into in 2014. The notes are due in 2032 and will finance Melbourne’s landmark Southern Cross station.
Mr Pike said: “The full amortisation feature of the senior secured notes facilitated a 17-year currency swap, and allowed Civic Nexus to achieve financing certainty for the remainder of the project concession.”
Ms Mouton added: “The US private placement markets continue to be attractive for infrastructure issuers and, given the significant debt volumes implicated in many of the current asset transactions, we expect our clients to continue to look to US debt capital markets to achieve tenor and maximise funding certainty.”
A group of US accredited investors, Westpac and Bank of America Merrill Lynch, were the Note Placement Agent and Westpac was the swap bank.