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Bell Gully advises on Prime recapitalisation
Bell Gully has advised Prime Infrastructure on the New Zealand aspects of its recapitalisation including a A$1.5 billion capital raising and A$295 million asset sale to cornerstone investor Brookfield Asset Management, Inc.
Formerly Babcock & Brown Infrastructure, Prime needed to take urgent action to address its financial position or potentially face voluntary administration. It was carrying nearly A$9 billion of debt, including A$300 million of corporate debt required to be paid down in February 2010.
In October 2009, Prime announced a series of recapitalisation transactions to develop its debt financing requirements – a proposal developed by new cornerstone investor Brook Asset Management, Inc. The recapitalisation was completed on 19 November 2009
Bell Gully partners Clive Taylor and Glenn Joblin with senior associate James Bishop advised Prime on the New Zealand aspects of the series of transactions including capital raising, convertible notes issue, debt facilities, capital structure, simplified disclosure prospectus and conversion of Subordinated Prime Adjusting Reset Convertible Securities.
The Prime simplified disclosure prospectus was one of the first of its kind under New Zealand's new simplified disclosure prospectus regime introduced just two weeks prior and was innovative in its approach.
