Freehills is acting for Queensland- based FKP Property Group and Mallesons Stephen Jaques is acting for Goldman Sachs, the sole lead manager and bookrunner, on FKP's $125 million convertible bonds issue.
The proceeds of the issue will be used to repay $100 million of FKP's retirement syndicate facility, which was due to mature in March, and the balance of the issue will be used for general corporate purposes.
The bonds were offered to institutional investors and have a five-year term which can be converted into FKP stapled securities. The bonds are to be listed on the Singapore stock exchange. The issue is one of a number of recent convertible bond transactions, which indicates an upswing in the space after a dormant period following the GFC.
The issue is also one of the first to use the recently restored ASIC relief provisions, alleviating the need for a compliance prospectus for the bonds.
Sullivan said of the issue: "Convertible bonds can provide useful funding diversification for issuers. It has been pleasing to see issuers using the restored ASIC relief, which we were actively involved in seeking. Increased issuance is also consistent with the government's reforms to stimulate corporate bond markets generally."
The Freehills team is being led by Patrick Lowden and Philippa Stone, with Ivan Yu, Laura Cameron and Jeremy Chew assisting. John Sullivan and Rowan Russell are the lead Mallesons partners on the deal, and the team also includes solicitors Avi Naidu and Alissa Bott.