Baker & McKenzie has advised TFS Corporation Ltd on the sale of US$250 million aggregate principal amount of 8.75% Senior Secured Notes due 2023 (the "Notes").
The Notes were sold to institutional investors in the United States, Europe and Australia and, following the closing on 27 July 2016, listed on the Singapore Exchange.
Net proceeds from the sale of the Notes will be used to repay US$200 million of high yield bonds issued in 2011 and for general corporate purposes. TFS is the world's largest owner and manager of commercial Indian sandalwood plantations.
A global Baker & McKenzie team provided US, Australian and Singapore law advice on the transaction. US Capital Markets Partner Andrew Reilly led the team from the Firm's Sydney office. Assisting him on the US law aspects of the transaction were Associates Anna Kramer in Sydney and Michael Hamilton in Houston. Australian law advice on this secured financing was provided by Finance Partner Howard Fraser and Associates Angelique Leondis and Emily Hunter.
Andrew Reilly said "We were very pleased to represent TFS on its second bond offer. The transaction demonstrates Baker & McKenzie's unique "one stop shop" capability, providing the requisite US and Australian law advice under one roof in Australia. The transaction was executed more effectively, efficiently and conveniently than using separate US, Australian and Singapore law firms."
Baker & McKenzie has advised on five high yield bond offers by Australian companies, as well as several other US debt capital markets transactions, over the past five years. Mr Reilly expects Australian companies to continue to tap the US debt markets as they generally offer competitive pricing, maturity and covenants compared to bank finance and local debt markets.