HSF acts on $750m capital notes issue

Herbert Smith Freehills (HSF) played a key role in the latest capital notes issue of Macquarie Group Ltd (MGL).

The global firm, with a team headed by dealmaker Philippa Stone, advised the joint lead managers of MGL, which recently launched the Macquarie Group Capital Notes 4 (MGCN4) offer. Stone was supported by solicitors Michael Burrell, Elizabeth Cameron, and Daniel Stathis.

“This transaction follows our recent role acting for the joint lead managers on the offer of Westpac Capital Notes 6,” Stone said.

MGCN4 is expected to raise about $750m, which will be used for general corporate funding and capital management. Westpac launched its capital notes 6 offer in November, and successfully issued $1.42bn of the notes in December.

There were nine joint lead managers for MGCN4. HSF advised Macquarie Capital (Australia), which was also the sole arranger, as well as ANZ Securities, Citigroup Global Markets Australia, Commonwealth Bank of Australia, Evans Dixon Corporate Advisory, J.P. Morgan Securities Australia, Morgans Financial, National Australia Bank, and Westpac Institutional Bank.

Other recent bank hybrids HSF has worked on were Macquarie Group Capital Notes 3 and Commonwealth Bank’s PERLS X, which raised $1bn and $1.37bn, respectively, in early 2018.