Freehills has announced it is advising on the first convertible bond to utilise ASIC's new class order relief.
Freehills is acting for Paladin Energy Ltd (Paladin) on its offer of $US300 million of senior, unsecured convertible bonds due 2015 (Offer), which was made to institutional, professional and sophisticated investors.
The proceeds of the Offer will be used to fund Paladin's concurrent tender offer to acquire from eligible bondholders its $US250 million issue of convertible bonds due in December 2011 (on which Freehills is also acting), with any amount not applied to the tender offer being utilised to fund in part the proposed expansion of the Langer Heinrich Mine and to pursue future growth opportunities.
The Joint Bookrunners and Joint Lead Managers are Barclays Capital and J.P. Morgan and the co-manager is Société Générale Corporate & Investment Banking.
The Freehills team is being led by partners Philippa Stone and Patrick Lowden, who are supported by lawyers Ivan Yu and Laura Cameron.
Lowden said of the deal: "One of the interesting aspects was the concurrent offer of new convertible bonds and tender offer for existing bonds, with the offer of new bonds being used to fund the tender offer. As more Australian companies look to the capital markets to fund themselves, liability management transactions of this kind can be expected to become more common."