Macquarie Group Limited’s Capital Notes 5 Offer

Herbert Smith Freehills advised the Joint Lead Managers of Macquarie Group Limited’s offer of Macquarie Group Capital Notes 5.

MGL also undertook a reinvestment offer under which eligible holders of Macquarie Capital Notes 2 (MCN2) could reinvest some or all of their MCN2 in MCN5.

MCN5, which will qualify as Eligible Capital for Australian Prudential Regulation Authority purposes, are fully paid, unsecured, subordinated, non-cumulative, convertible, perpetual notes issued by MGL. They were offered at an issue price of A$100 per MCN5.

The offer was originally intended to raise A$500 million (with the ability to raise more or less) but was increased to A$550 million following strong support from brokers and institutional investors in the broker firm offer. This was then further increased to A$725 million post the securityholder and reinvestment offers. The proceeds received by MGL under the offer will be used for general corporate funding and capital management purposes.

Herbert Smith Freehills acted for the nine Joint Lead Managers, being Macquarie Capital (Australia) Limited (who was also the sole arranger), ANZ Securities Limited, Citigroup Global Markets Australia Pty Limited, Commonwealth Bank of Australia, E&P Corporate Advisory Pty Limited, Ord Minnett Limited, Morgans Financial Limited, National Australia Bank Limited, and Westpac Institutional Bank.

The Herbert Smith Freehills team was led by partner Philippa Stone (Picture) and supported by Special Counsel Rob Finlay, Senior Associate Michael Burrell and solicitor Jennie Bian.

Involved fees earner: Jennie Bian – Herbert Smith Freehills; Michael Burrell – Herbert Smith Freehills; Rob Finlay – Herbert Smith Freehills; Philippa Stone – Herbert Smith Freehills;

Law Firms: Herbert Smith Freehills;

Clients: ANZ Securities Limited; Citigroup Global Markets Australia Pty Ltd; Commonwealth Bank of Australia; E&P Corporate Advisory Pty Limited; Macquarie Capital; Morgans Financial Limited; National Australia Bank; Ord Minnett; Westpac Banking Corporation;

Author: Sonia Carcano