The Notes were sold to institutional investors in the United States and Asia and, following the closing on 26 April 2017, will be listed on the Singapore Exchange.
Net proceeds from the sale of the Notes will be used to repay US$299.7 million of high yield bonds that were issued in May 2013 and for general corporate purposes. Barminco is a market leader in the underground hard-rock development and production contract mining sector.
A global Baker McKenzie team provided US, Australian and Singapore law advice on the transaction. US Capital Markets Partner Andrew Reilly and Australian Banking & Finance Partner Bryan Paisley led the team from the Firm's Sydney office. Assisting Andrew on the US law aspects of the transaction were Associate Anna Kramer in Sydney and Partner Michael Hamilton in Houston. Bryan ran the Australian law advice on the bond offer, the new super senior $100 million secured credit facility and the hedging transaction and was assisted by Teresa Ientile, Jana Hitchock and Justin Wong.
Andrew Reilly said "We were very pleased to represent Barminco on its second high yield 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 by one firm more effectively, efficiently and conveniently than using separate US, Australian and Singapore law firms."
Having advised all three Australian issuers that have used new secured high yield bonds (with super senior financing arrangements) to refinance existing bonds over the past 10 months, Baker McKenzie has become the leader in this market. Mr Reilly expects Australian companies to continue to tap the US debt markets as they generally offer competitive pricing, maturity and covenants compared to traditional bank finance and local debt markets.