The $263m deal introduces a new asset class to investors
King & Wood Mallesons (KWM) has confirmed its role as drafting counsel for Household Capital (HHC) in relation to its first reverse mortgage term securitisation.
The deal generated $263m with the purpose of financing HHC's continued growth, releasing a premium to par, and facilitating HHC’s assistance of retired Australian homeowners through the provision of home equity funding. The transaction introduces a new asset class to investors and generates scalable, sustainable funding for HHC.
“The transaction included a number of innovative features to deliver the underlying risk, cashflow and security of Australian variable rate reverse mortgages to local and global institutional investors, and to allow HHC ongoing flexibility in providing tailored solutions for its customers”, KWM said.
Anne-Marie Neagle spearheaded the firm’s team with support from Matt Kaminsky and Jenny Guo.
“HHC's successful generation of investor interest in funding Australian equity release assets creates a platform for the future development of this asset class, and helps to fill a gap in Australian retirement funding and housing”, Neagle said.
KWM also played a part in the financing of the Orana BESS project earlier this month. The firm’s team provided project financing guidance to a lender group consisting of ANZ, BNP Paribas, CBA, CIBC, DBS, ING Mizuho, Rabobank, Siemens, SMBC and Westpac.
Partners Claire Rogers, Amy Maguire and Chris Dynon led this team, supported by senior associate Emma Reed and solicitor Eugenia Muñoz.
In addition, KWM welcomed 14 new special counsel and 47 new senior associates in its mid-year promotions round. The newly promoted lawyers took on their new positions on 1 July.
