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Herbert Smith Freehills has advised Virgin Australia Holdings Limited, Australia’s second largest airline group, on its establishment of its Australian Medium Term Note Programme and inaugural issuance under the Programme of A$150,000,000 8.25% Fixed Rate Notes due 2023, which completed on 30 May 2018.

Herbert Smith Freehills has a long-standing relationship with Virgin Australia, having advised on many strategic financing and debt capital markets transactions, including its issuances of Rule 144A/Regulation S US$300,000,000 8.5% senior notes in 2014 and US$350,000,000 7.875% senior notes in 2016, which represented Virgin Australia’s debut issues of unsecured notes in the international debt capital markets.

The Herbert Smith Freehills team was led by Australian Head of Debt Capital Markets, Patrick Lowden, with assistance from solicitors Shivagar Siva and Foucauld Prache and graduate Madeline Winterbottom.

Mr Lowden said: “It has been a pleasure to work with the Virgin Australia team on its AMTN Programme establishment and inaugural A$150,000,000 Fixed Rate Note issuance.

This issue marks an exciting development for the Australian wholesale debt capital markets, demonstrating investor support for quality high-yield issuers in a market traditionally dominated by investment grade issuers. This deepening of the Australian debt capital markets is encouraging and potentially opens the path for other similar issuers to come to market.”

The Virgin Australia and Hebert Smith Freehills teams worked closely with Arrangers and Dealers HSBC, UBS and ANZ and dealer counsel King & Wood Mallesons.