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Multimillion-dollar Term Loan B arrangement Australian first

Multimillion-dollar Term Loan B arrangement Australian first

An information management and storage services company has secured financing for a $250 million Term Loan B arrangement, the first such all-Australian dollar arrangement.

Firms: Allens, Sullivan & Worcester (Iron Mountain Australia Group Pty Ltd); Clifford Chance (Barclays Bank PLC); Simpson Thacher (Lending syndicate)

Deal: A lending syndicate has put up $250 million by way of Term Loan B arrangement for Iron Mountain Australia Group Pty Ltd.

Value: A$250 million

Area: Finance

Key players: The Clifford Chance team advising Barclays was led by banking and finance partner Richard Gordon. Counsel Alastair Gourlay and associates Adrian Blacker, Dean Bao and Munpreet Soomal assisted with the deal.

Deal significance:

The A$250 million Term Loan B (TLB) to Iron Mountain Australia Group marks an Australian-first in terms of both structure and substance.

The lending syndicate comprised a range of institutional investors, including a number of Australia’s leading superannuation funds.

The joint lead arrangers and joint bookrunners for the loan comprised Barclays Bank, Credit Agricole Securities (USA) Inc, and HSBC Bank Australia Ltd.

Barclays Bank, advised by Clifford Chance, also acted as the sole syndication agent in the deal.

“This innovative structure enabled Iron Mountain to leverage its global credit and access the local Australian institutional markets on a covenant-lite basis,” Clifford Chance partner Richard Gordon said.

“This transaction represents a number of firsts for the Australian market both in terms of being the first all Australian dollar TLB, governed by Australian law, and also in its precedent setting structure where local Australian security was supplemented by a synthetic collateral allocation mechanism (CAM) across to Iron Mountains US credit facilities.”

Iron Mountain Australia Group is an information management and storage services company. The company is a wholly owned subsidiary of Iron Mountain Incorporated (NYSE: IRM).

Mr Gordon said the loan is a demonstration of thought leadership on the part of the bank and its approach to the TLB space in Australia.

“Our team complements this status through the delivery of market-leading global financing solutions to the Australian market.”

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