Challenger Limited’s $178 Million Capital Raising

Ashurst has advised National Australia Bank, UBS and Westpac Institutional Bank as arrangers and joint lead managers.

Challenger Limited made an offer of non-cumulative, convertible, transferable, redeemable, subordinated, perpetual unsecured notes to raise A$250 million.

The Offer includes an Institutional Offer, a Broker Firm Offer, a Reinvestment Offer and a Securityholder Offer.

Under the Reinvestment Offer, eligible holders of Challenger Capital Notes 1 (CCN1) are able to reinvest in Challenger Capital Notes 3. In addition to the Offer and Reinvestment Offer, eligible CCN1 holders may choose to have their CCN1 repurchased for their face value of A$100 each, payable in cash.

Challenger intends to use the proceeds of the Offer to fund the regulatory capital requirements of Challenger Life Company Limited, the registered life company of the Challenger Group, and to refinance the Challenger Capital Notes 1 (issued in 2014) through the Reinvestment Offer and Repurchase Invitation.

The Ashurst team was led by partner Sarah Dulhunty (Picture), assisted by senior associate Simon Vose and lawyer Kyle McLachlan.

Involved fees earner: Sarah Dulhunty – Ashurst; Simon Vose – Ashurst;

Law Firms: Ashurst;

Clients: National Australia Bank; UBS; Westpac Banking Corporation;

Author: Michael Patrini