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Insurance group aims to raise $330m

Insurance group aims to raise $330m

Philippa Stone

Two global firms are advising on AAI Limited’s offer of new tier 2 hybrid securities, which will be convertible into Suncorp Group Limited shares.

Firms: Herbert Smith Freehills (Suncorp Group Limited, Suncorp Insurance Holdings Limited and AAI Limited); King & Wood Mallesons (UBS, National Australia Bank and Westpac)

Deal: AAI Limited has made an offer of new tier 2 hybrid securities (subordinated notes).

Value: $330 million

Area: Banking & finance

Key players: The Herbert Smith Freehills team was led by partners Patrick Lowden and Philippa Stone (pictured), supported by solicitor Michael Burrell and graduates Vivek Mahadevan and Mitchell Dearness.

Deal significance: AAI Limited (AAI) has made an offer of new tier 2 hybrid securities (subordinated notes). The proceeds received by AAI under the offer will be used for general corporate purposes and will form part of AAI’s shareholder funds investment portfolio.

The hybrid securities are floating rate, redeemable, unsecured subordinated notes issued by AAI and convertible into Suncorp Group Limited shares.

The offer has been made to institutional and other wholesale market investors and is intended to raise $330 million.

The subordinated notes qualify as tier 2 capital under the prudential standard for general insurers GPS 112.

The joint lead managers for the issue were UBS, National Australia Bank and Westpac.

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