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KWM and Freehills advise on IAG reinvestment offer
KWM and Freehills have acted on a $350 million reinvestment offer by Insurance Australia Group
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KWM and Freehills advise on IAG reinvestment offer
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Firms: King & Wood Mallesons (Insurance Australia Group), Freehills (joint lead managers and arrangers UBS and Macquarie)
Deal: Launch of IAG’s new convertible preference shares (CPS) hybrid and reset preference shares (RPS) reinvestment offer
Area: Banking and finance
Value: $350 milllion
Key players: Freehills’ lead partner was Philippa Stone. The King & Wood Mallesons team was led by M&A partner Shannon Finch and banking partner Ian Paterson, who were supported by senior associates Piny Ly, Henrik Moritz and Sarah Turner, and solicitors Nilofar Ali, Emily Zhang, Claire Horan, Alexandra Whelan and Sarah Silk
Deal significance: The offer represents the first issue by an insurance company of an instrument that will fully qualify as Tier 1 regulatory capital under the APRA’s current prudential standards. Under the reinvestment offer, existing holders of IAG’s RPS hybrid, which are due to be bought-back in June 2012, can reinvest their RPS into the new CPS. The new hybrid offering forms part of IAG’s ongoing capital management strategy, with the proceeds of the sale to be used for general corporate purposes, including the refinancing of Reset Preference Shares.
