09 Aug 2012

Clayton Utz advises on $350 million APA Group hybrid notes issue

Melbourne, 9 August 2012: Clayton Utz is advising the joint lead managers, Credit Suisse, Evans & Partners, Macquarie Capital, Morgan Stanley, RBS and RBS Morgans, on APA Group's $350 million offer of ASX-listed hybrid notes, announced to the market today.

Clayton Utz Melbourne Equity Capital Markets partner Brendan Groves led the firm's team, with support from senior associates Elissa Tobin and Warrick Louey.

APA Group, which is Australia's largest natural gas infrastructure business, will use the funds raised towards continued investment in the growth of its existing infrastructure assets, as well as the acquisition of Hastings Diversified Utilities Fund if that transaction proceeds.

Brendan said recent capital markets activity indicated that companies were increasingly favouring hybrid issues as an efficient and cost effective way to raise equity, and off the back of increased investor appetite for higher yields.

Clayton Utz has acted on two significant capital raising transactions in recent weeks: Caltex Australia's $300 million offer of subordinated notes (advising Citigroup and UBS as joint structuring advisers and joint lead managers, and National Australia Bank and Westpac Institutional Bank as joint lead managers) and Tatts Group Limited's $200 million issue of Tatts Bonds (as advisers to Tatts).

Clayton Utz was also the adviser to Woolworths Limited on its Woolworths Notes II issue in 2011, which won Hybrid Deal of the Year at the Insto Distinction Awards 2012, and to Origin Energy Limited on its $500 million offer of hybrid notes last November.

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Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.