Debt Capital Markets & Securitisation

Banking & Finance

Banking & Finance » Debt Capital Markets & Securitisation

The debt capital and securitisation markets have returned to form as an alternative source of funding to the bank debt market.

Renewed confidence and substantial improvements in financial market conditions have seen Corrs work with issuers and arrangers to diversify funding sources and efficiently raise debt capital in domestic and international markets.

Innovative approaches to funding have 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 Experts

Brad Robinson.jpg

Brad Robinson

Partner Location Melbourne Profile
ROWARTH Jade website grey SIZED TH

Jade Rowarth

Partner Location Melbourne Profile
ANDERSON Peter website grey fake SIZED TH

Peter Anderson

Special Counsel Location Brisbane Profile

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.

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.

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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.

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.

More

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.

More

Our Thinking

Rating agency’s duty of care to investors upheld in Australia

The Federal Court has upheld a finding that Standard & Poor’s was negligent in giving a financial product a AAA rating. Does this open the door for copycat actions?

More

When “insolvency remoteness” is closer than you think

Limited recourse provisions to protect borrowers and financiers against insolvency risks may be weaker due to a recent court case.

More

Structured receivables financing: Your path to cheaper credit?

Companies with healthy accounts receivables now have a new option for cheaper finance.

More

Exit strategies in commercial relationships - Rethink after Andrews

Poorly drafted exit strategies risk being held unenforceable penalties. Does yours need a rethink?

More

Quick guide to establishing a presence in Indonesia

Indonesia is a vast emerging market. What are the choices for establishing a presence there?

More

Australia-Indonesia: Time for a closer future

Indonesia’s potential is vast and now is the time for genuine engagement.

More

When a security interest beats legal title - Only under the PPSA

Neglecting to register an interest under the PPSA could leave you wholly out of pocket.

More

High yield bonds / term loan B facilities - Are they a realistic option for Australian sub investment grade borrowers?

More Australian companies than ever are issuing bonds to raise debt funding, but why are some companies locked out of the market?

More

Is there a better way to determine Libor?

Is the latest crisis in the banking sector enough to drive overdue reform of Libor?

More

The break-up of the Eurozone? Implications for Australia

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.

More

Eurozone crisis may have a silver lining for Australian infrastructure

The Eurozone crisis is of fundamental concern for global economic stability. How should Australia respond?

More

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.

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.

Our Thinking

Rating agency’s duty of care to investors upheld in Australia

The Federal Court has upheld a finding that Standard & Poor’s was negligent in giving a financial product a AAA rating. Does this open the door for copycat actions?

When “insolvency remoteness” is closer than you think

Limited recourse provisions to protect borrowers and financiers against insolvency risks may be weaker due to a recent court case.

Structured receivables financing: Your path to cheaper credit?

Companies with healthy accounts receivables now have a new option for cheaper finance.

Exit strategies in commercial relationships - Rethink after Andrews

Poorly drafted exit strategies risk being held unenforceable penalties. Does yours need a rethink?

Quick guide to establishing a presence in Indonesia

Indonesia is a vast emerging market. What are the choices for establishing a presence there?

Australia-Indonesia: Time for a closer future

Indonesia’s potential is vast and now is the time for genuine engagement.

When a security interest beats legal title - Only under the PPSA

Neglecting to register an interest under the PPSA could leave you wholly out of pocket.

High yield bonds / term loan B facilities - Are they a realistic option for Australian sub investment grade borrowers?

More Australian companies than ever are issuing bonds to raise debt funding, but why are some companies locked out of the market?

Is there a better way to determine Libor?

Is the latest crisis in the banking sector enough to drive overdue reform of Libor?

The break-up of the Eurozone? Implications for Australia

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.

Eurozone crisis may have a silver lining for Australian infrastructure

The Eurozone crisis is of fundamental concern for global economic stability. How should Australia respond?

Our Experts

Brad Robinson.jpg

Brad Robinson

Partner Melbourne +61 3 9672 3550
ROWARTH Jade website grey SIZED TH

Jade Rowarth

Partner Melbourne +61 3 9672 3240
ANDERSON Peter website grey fake SIZED TH

Peter Anderson

Special Counsel Brisbane +61 7 3228 9450