HSF assists on $1.31bn capital notes issue

Herbert Smith Freehills (HSF) has advised a joint lead manager syndicate on a $1.31bn capital notes issue.

The firm assisted 10 joint lead managers of Australia and New Zealand Banking Group Limited (ANZ) in its offer of Capital Notes 7 (CN7). The joint lead managers were ANZ Securities Limited, Commonwealth Bank of Australia (Capital Markets Division), E&P Corporate Advisory Pty Limited, Morgan Stanley Australia Securities Limited, Morgans Financial Limited, National Australia Bank Limited, Ord Minnett Limited, Shaw and Partners Limited, UBS AG (Australia Branch), and Westpac Institutional Bank.

According to HSF, the offer will allow eligible holders of ANZ Capital Notes 2 (CN2) to reinvest some or all of their CN2 into CN7. CN7 are mandatorily convertible subordinated perpetual securities issued by ANZ and will constitute Additional Tier 1 Capital under the current Australian Prudential Regulation Authority standards.

Moreover, HSF said that the proceeds of the offer will be used by ANZ to refinance CN2 and for general corporate purposes.

Partners Philippa Stone and Fiona Smedley led the HSF team on the transaction, with support from senior associates Charlotte Cameron, Yorick Ng and Michael Burrell, and solicitors Adrian Palladino and David Tilley.

King & Wood Mallesons acted for the ANZ.

“We are delighted to have again acted for the joint lead manager syndicate on another successful ANZ notes transaction, particularly as this transaction marks the first bank hybrid under the new product design and distribution obligations regime in Part 7.8A of the Corporations Act,” Stone said.