Herbert Smith Freehills has advised the Joint Lead Managers of Macquarie Group Limited’s (MGL) offer of new hybrid securities known as Macquarie Group Capital Notes 2 (MCN2), which are fully paid, unsecured, subordinated, non-cumulative, perpetual and convertible notes issued by MGL (Offer).
The Offer was originally intended to raise A$400 million (with the ability to raise more or less) but has been increased to at least A$500 million following strong support from brokers and institutional investors.
MCN2 are offered at an issue price of A$100.
MCN2 will qualify as Eligible Capital for Australian Prudential Regulation Authority (APRA) purposes. The proceeds received by MGL under the Offer will be used for general corporate funding and capital management purposes.
Herbert Smith Freehills acted for eight Joint Lead Managers, being Macquarie Capital (Australia) Limited (who was also the sole arranger), ANZ Securities Limited, Commonwealth Bank of Australia, Evans and Partners Pty Limited, J.P. Morgan Australia Limited, Morgans Financial Limited, National Australia Bank Limited and Westpac Institutional Bank.
The Herbert Smith Freehills team was led by partner Philippa Stone who was supported by solicitor Ben Robinson.
Philippa Stone said “We are very pleased to have acted for the joint lead manager syndicate on another successful Macquarie capital notes transaction. This transaction follows our recent roles on a number of significant bank hybrids and continues to highlight investor demand for Australian bank hybrid securities.”
MGL was advised by King & Wood Mallesons.
Herbert Smith Freehills’ capital markets team has also recently acted for:
- The joint lead managers on AMP’s A$230 million offer of AMP Capital Notes 2;
- The joint lead managers on Westpac Banking Group’s A$1.25 billion offer of Westpac Capital Notes 3;
- The joint lead managers on ANZ’s A$970 million offer of ANZ Capital Notes 3;
- The joint lead managers on Macquarie Bank Limited’s A$429 million offer of Macquarie Bank Capital Notes; and
- Commonwealth Bank of Australia on its A$3 billion offer of PERLS VII (and concurrent PERLS V reinvestment offer)