Tabcorp Holdings Limited has announced its offer of Tabcorp Bonds, which will be listed on the Australian Securities Exchange. Tabcorp is aiming to raise about $200 million through the public offer.
Allens Arthur Robinson partners Robert Simkiss, Robert Pick and Jason Morris headed the Allens team advising on the transaction, which according to Pick, is the first major retail offering of corporate bonds in almost 20 years.
"This transaction represents the first retail corporate bond offering by an ASX-listed entity in almost two decades," Pick said.
"By entering the retail corporate bond market, Tabcorp is seeking to access a funding pool that will enable it to further proactively manage and diversify its debt profile in the current uncertain economic environment."
The Tabcorp Bonds have a five-year term, paying quarterly interest calculated as a fixed margin over the three-month Bank Bill Rate.
Pick predicated that, if successful, the Tabcorp deal could be the first of a spate of retail bond offerings by ASX-listed companies.
"This transaction may well be the first in a series of similar offerings by ASX-listed entities as the retail corporate bond market reopens and provides another funding option for investment-grade entities as part of their ongoing balance sheet management programs."
Allens has had a longstanding relationship with Tabcorp, and advised them in early 2009 on their $387 million institutional placement and share purchase plan.