Banking & Finance
Banking & Finance » Debt Capital Markets & Securitisation
The debt capital and securitisation markets are returning to form as an alternative source of funding to the bank debt market.
Renewed confidence and substantial improvements in financial market conditions has seen Corrs work with issuers and arrangers to diversify funding sources and efficiently raise debt capital in domestic and international markets.
This has given leading Australian corporates like Fortescue Metals Group and Woodside the ability to fund their expansion plans by tapping the newly resurgent US high yield and investment grade markets under Rule 144A and banks like ME Bank the ability to fund their balance sheet in the domestic and offshore securitisation markets.
Our Experience
Fortescue Metals Group’s bond offerings
Fortescue Metals Group’s US$2.04 billion senior unsecured note offering under Rule 144A and the follow on US$1.5 billion offering, was the first unsecured high yield offering by an Australian corporate issuer post GFC and one of the biggest bond offerings by an Australian issuer in 2010.
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ME Bank’s global RMBS program
ME Bank’s A$276 million Maxis Loans Securitisation Fund 2009-1 was the first public issue of Australian residential mortgage-backed securities (RMBS) to occur without government support since October 2008, not just in Australia but globally.
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Woodside’s US$ bond offerings
Corrs advised Woodside on its US$700 million 10 year corporate bond offering in the Rule 144A market. This follows earlier US$400 million 5 year, US$600 million 10 year and US$700 million 5 year offerings in that market in 2009 on which Corrs also advised Woodside.
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MoreOur Experience
Fortescue Metals Group’s bond offerings
Fortescue Metals Group’s US$2.04 billion senior unsecured note offering under Rule 144A and the follow on US$1.5 billion offering, was the first unsecured high yield offering by an Australian corporate issuer post GFC and one of the biggest bond offerings by an Australian issuer in 2010.
The ability to raise this debt capital and the flexibility it provides has been critical to Fortescue’s ability to pursue its extensive Pilbara expansion plan.
Corrs advised J.P. Morgan and The Royal Bank of Scotland as joint lead managers in relation to due diligence, transaction documentation and the offering memorandum.
ME Bank’s global RMBS program
ME Bank’s A$276 million Maxis Loans Securitisation Fund 2009-1 was the first public issue of Australian residential mortgage-backed securities (RMBS) to occur without government support since October 2008, not just in Australia but globally.
Corrs advised ME Bank on all aspects of the deal, including preparing disclosure documentation and underlying transaction documents. Corrs also provided taxation and regulatory advice.
Corrs have also advised ME Bank on the majority of the bank’s recent RMBS transactions including the A$1 billion SMHL SF 2011-1 public issue, the A$673 million SMHL SF 2010-1 public issue and the Irish Stock Exchange listed SMHL SF 2010-2E comprising A$ tranches of A$801 million and an US$335 million tranche.
Woodside’s US$ bond offerings
Corrs advised Woodside on its US$700 million 10 year corporate bond offering in the Rule 144A market. This follows earlier US$400 million 5 year, US$600 million 10 year and US$700 million 5 year offerings in that market in 2009 on which Corrs also advised Woodside.
The proceeds of the offering will be used to refinance existing debt and to fund Woodside’s ongoing capital and exploration program.
The success of these offerings demonstrates the strong US public debt market appetite for the credit of Australian corporates operating in the energy and resources sector.
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Hopes were high that a resolution to the European crisis could be achieved at last week’s EU summit. However, departure of one or more countries from the Eurozone is a real possibility. We consider what this means for Australia.
Our Experts
Brad Robinson
Partner Melbourne +61 3 9672 3550
John Munton
Partner Sydney +61 2 9210 6348
Megan O'Rourke
Partner Perth +61 8 9460 1712
Rommel Harding-Farrenberg
Partner Sydney +61 2 9210 6366