COUNTRY REPORT AUSTRALIAcomprises a seven-year tranche A, a seven-
year tranche B available in US dollars, and a
7.4-year tranche C.
The interest margins on tranches A
and C are 155bp and 162.5bp over BBSY,
respectively, while tranche B offers a
margin of 120bp over Libor.
Banks are invited to join tranches A and
C as MLAs with commitments of A$50m
or more, or as lead arrangers with A$30m–
$49m tickets.
Banks are also invited to join tranche B as
MLAs with commitments of US$30m or more,
as lead arrangers with US$20m–$29m tickets,
or as arrangers with US$10m–$19m tickets.
The upfront fees are 70bp on tranches A
and B, and 75bp on tranche C.
Bank meetings will be held in Sydney
on December 10, Singapore on December
11, Taipei on December 12 and Tokyo
on December 13. The deadline for
commitments is January 18.
Funds are for refinancing purposes.
Rated Baa3/BBB–/BBB, the borrower is a
major energy provider in Australia.EQUITY CAPITAL MARKETS
› CENTURIA SEALS INSTO RIGHTSCENTURIA INDUSTRIAL REIT has raised A$30m
from the institutional portion of a A$51m
(US$38m) rights offer.The institutional offer of 11m units was
well supported by existing institutional
unitholders, leading to a 69% take-up, and
the shortfall was placed with existing and
new uniholders.
The retail portion, which is expecting to
raise A$21m, will run from December 10 to
December 19.
The REIT launched the 1-for-13.5 non-
renounceable rights offer at an issue price
of A$2.77 per unit, representing a 3.1%
discount to the pre-deal close of A$2.86.
Proceeds from the rights issue will fund
the company’s purchase of two industrial
properties at a combined cost of A$54.4m.
The REIT will raise debt for the remaining
amount.Oxford Properties funding Investa buy
Loans Four launch A$2.2bn borrowing into syndicationCanadian real estate investment company
OXFORD PROPERTIES GROUP is tapping a
A$2.22bn (US$1.62bn) loan for its proposed
acquisition of Australia’s INVESTA OFFICE FUND.
Commonwealth Bank of Australia, ING
Bank, Morgan Stanley and Westpac are the
mandated lead arrangers and bookrunners
of the loan, which comprises a A$1.036bn
two-year portion (tranche A) and a A$1.183bn
five-year piece (tranche B).
Both tranches have bullet maturities and
pay interest margins of 125bp and 170bp over
BBSY, respectively.
Banks are invited to join as MLAs with
commitments of A$150m or above for
participation fees of 18bp (tranche A) and
45bp (tranche B) or as lead arrangers with
tickets of A$100m–$150m for fees of 16bp
(tranche A) and 40bp (tranche B). Theblended participation fees are 32bp and 29bp,
respectively, for the two commitment levels.
Prospective lenders can commit on a pro-
rata basis to the two tranches.
The borrowing represents 60% of the
net market value of the properties serving
as security. OPG Office Fund Finco is the
borrower.
On Tuesday, OPG emerged as the winner
in the race to buy IOF after the latter’s
shareholders voted in favour of OPG’s
A$3.35bn offer. In October, IOF had entered
into a scheme implementation agreement
with OPG, which trumped a A$3.2bn bid from
private equity giant Blackstone Group. OPG’s
winning bid was at A$5.60 per IOF share.
The bidding war for IOF had played out
since Blackstone first made a A$3.08bn
unsolicited and non-binding bid in late May,two years after IOF shareholders rejected a
A$2.5bn bid from Australian firm Dexus.
In August, Citigroup, Deutsche Bank and
National Australia Bank had launched a
A$3bn five-year loan backing Blackstone’s
bid. That loan comprised a A$2.3bn term
loan tranche A, a A$500m revolving credit
tranche B and a A$200m capex facility
tranche C.
The margins were 200bp over BBSY for
tranche A and 100bp over BBSY for tranches
B and C. MLAs committing A$125m or more
were offered a participation fee of 50bp.
OPG invests in and manages real
estate assets on behalf of OMERS, one of
Canada’s largest pension plans. IOF is one of
Australia’s largest owners and managers of
institutional-grade office real estate.
PRAKASH CHAKRAVARTI, SOPHIA RODRIGUESTop bookrunners of Australia syndicated loans
1/1/18 – 30/11/18
Amount
Name Deals US$(m) %
1 ANZ 43 11,722.0 23.9
2 NAB 30 6,006.8 12.2
3 CBA 27 5,445.3 11.1
4 MUFG 18 3,877.7 7.9
5 HSBC 16 3,329.2 6.8
6 Westpac 17 3,220.9 6.6
7 Mizuho 14 2,416.7 4.9
8 Bank of China 4 1,345.8 2.7
9 Credit Agricole 4 1,106.5 2.3
10 SMFG 8 1,030.9 2.1
Total 102 49,063.8
- Based on market of syndication and market total
Proportional credit
Source: Refinitiv data SDC Code: S7
Top bookrunners of Australian equity and
convertible offerings
1/1/18 – 30/11/18
Amount
Name Issues US$(m) %
1 UBS 25 8,746.8 24.9
2 Macquarie 19 5,226.2 14.9
3 Morgan Stanley 8 3,513.9 10.0
4 Citigroup 15 2,067.0 5.9
5 JP Morgan 9 1,657.4 4.7
6 Deutsche 4 1,611.0 4.6
7 Goldman Sachs 9 1,526.7 4.3
8 Bell Financial 59 1,250.3 3.6
9 Morgans Financial 33 964.8 2.7
10 BAML 1 883.3 2.5
Total 631 35,201.8
*Market volume
“Standard Exclusion not applicable”
Proportional credit
Source: Refinitiv data SDC Code: AK1Top bookrunners of Australian equity
1/1/18 – 30/11/18
Amount
Name Issues US$(m) %
1 UBS 25 8,746.8 25.4
2 Macquarie 19 5,226.2 15.2
3 Morgan Stanley 8 3,513.9 10.2
4 Citigroup 15 2,067.0 6.0
5 JP Morgan 9 1,657.4 4.8
6 Goldman Sachs 8 1,344.0 3.9
7 Deutsche 3 1,261.0 3.7
8 Bell Financial 59 1,250.3 3.6
9 Morgans Financial 33 964.8 2.8
10 BAML 1 883.3 2.6
Total 619 34,390.5
*Market volume
“Standard Exclusion not applicable”
Proportional credit
Source: Refinitiv data SDC Code: AK2