Blake Dawson's debt capital markets team has recently advised on a landmark transaction in the Australian market for The Chris O'Brien Lifehouse at RPA.
Lifehouse at RPA is a self-sustaining not-for-profit charitable organisation which will bring together all the elements of cancer treatment, education, research, care and support within a single centre of excellence at Lifehouse.
Blakes advised Lifehouse at RPA in relation to the proposed upcoming issuance by it of up to $35 million in "Charitable Bonds". The Charitable Bonds are coupon paying and have a maturity of eight years, with a remarketing opportunity in year six.
According to Blakes, this is the first issue of Charitable Bonds in Australia.
The proceeds of the issuance of the Charitable Bonds will be used by Lifehouse at RPA in the financing for the construction of the new $230 million state-of-the-art Lifehouse facilities that will incorporate the operations of the existing Sydney Cancer Centre.
Advising on the transaction involved a number of unique challenges, as a result of the nature of the issuer and targeted investor groups. Lifehouse at RPA has the benefit of an ASIC Class Order exemption from the usual Corporations Act offering requirements.
In particular, the terms of the Charitable Bonds were structured so as to allow for investors to donate some or all of their interest and principal on their Charitable Bonds in the future should they wish to do so.
The Charitable Bonds offer the opportunity for Lifehouse at RPA to build a broader network of external financial supporters, and gives high net-worth and other institutional investors the opportunity to support Lifehouse at RPA in a more sophisticated way than through traditional donations.