Asialaw Profiles
The Guide to the legal markets of the Asia-Pacific

Allens Arthur Robinson’s banking and finance team is “still a pillar to project financing in the Australian market”, says a client. The firm once again retains its standing as a top tier banking and finance firm, drawing praise from clients for its “ability to prioritise legal issues and achieving innovative results.”

Partner Philip Cornwell’s “ability to prioritise the legal issues and achieve innovative results is second to none”, and he is one of many “superstars at Allens Arthur Robinson”, says a client.

One of the highlights in the past year was advising Origin on US$5.4 billion of bridge and syndicated term facilities. This funding was used in the acquisition of the Integral Energy and Country Energy retail businesses from NSW state owned energy network businesses, as well as the entry into GenTrader arrangements with Eraring Energy for general corporate purposes of the Origin group.

Another strong year for Freehills saw the team continue to “provide excellent service and advice in all areas of the management of process systems, people and legal sign off”, says a client. The team is praised by clients for its “interest in providing solutions to problems and getting outcomes”.

The firm houses a team of strong lawyers, which includes Andrew Booth who is praised by one competitor as “being very good with complex matters” and having the ability to “keep things simple and easy to understand”.

Last year saw the firm advise the financiers to the Southern Way Consortium, which was selected as the successful bidder for the A$759 million (US$818 million) Peninsula Link. This major Victorian project involved the construction of a 27 kilometre freeway standard road, joining the existing Mornington Peninsula Freeway.

“Mallesons Stephen Jaques still sets the barometer for every banking team in Australia,” comments a rival law firm partner. The renowned banking and finance team is “the best firm in project finance as far as I am concerned”, says a client.

The team at Mallesons is “high quality with very good depth”, says a rival partner. “I quite like Ken Astridge and his work.”

The team acted for the financiers to the winning consortium, made up of Industry Funds Management, Queensland Investment Corporation and Global Infrastructure Partners, which acquired a 99 year lease over the Queensland Port. The sale delivered US$2.3 billion in cash proceeds to the consolidated fund, and the consortium agreed to fund the future upgrade of section 3 of the Port of Brisbane Motorway at an estimated cost of US$216 million.

A very busy year for Blake Dawson saw the team acting as adviser to the WICET Group in relation to the US$3.2 billion development and financing of a new coal export terminal at Golding Point in the Port of Gladstone.

One client comments that the firm “has a team that can deliver quality and market relevant advice”, and “consistently delivers quality service”. Standout lawyer Paul Jenkins is highly valued by clients, with one saying “he is very professional and I highly regard his work”.

Other notable transactions included advising Qantas on the refinancing of a US$1.3 billion syndicated loan note facility, underwritten by ANZ Banking Group and BNP Paribas.

Clayton Utz rebounded strongly from the partner defections the previous year with the hiring of Andrew Jinks from Allens Arthur Robinson. “Andrew is a special talent that is always great to see on the opposite side,” says one competitor.

Clients of the firm have found the team to be “very good operators” with the knowledge to provide “high quality advice”. One international client praises the team as being especially “knowledgeable in its field in Australia”, and “very good for my local market”.

The team acted for a syndicate of 10 lenders on a A$1 billion syndicated term loan and revolving credit facilities to SPI (Australia) Assets (SPIAA), a subsidiary of Singapore Power Limited (SPL). The facilities were secured by a guarantee from SPL. They were to be used for the repayment and cancellation of part of an existing US$3.7 billion SPIAA facility and for the financing of SPIAA’s general corporate requirements.

“Gilbert + Tobin is very knowledgeable, very experienced and willing to come up with ideas that may be outside the box,” says a client. This constantly improving law firm has enjoyed another tremendous year.

The team is led by star partner John Schembri, who one client decribes as a “technically sound individual who has the ability to make the most complicated matters simple”.

Last year’s highlights included advising Pacific Equity Partners and related funds on their role as a shareholder and secured creditor of REDgroup Retail, the owner of Borders Books, Whitcoulls and Angus & Robertson in Australia and New Zealand.

Another notable transaction was advising Macarthur Water on the 10 year extension of the existing Water Filtration Agreement with Sydney Water Corporation and a US$92 million additional project finance facility.

With a recognised team that provides continued excellence, the Minter Ellison banking and finance practice “is a leading firm with good specialist experience”, says one client. “Its advice and service is first class.”

Star partner Daniel Marks is “one of the best in the banking and finance industry”, and led a team on a US$1.2 billion syndicated facility of listed Reit, ING Industrial Fund (IIF). This was for Goodman Group consortium’s takeover of IIF by scheme of arrangement, and the debt aspects of the acquisitions by Mirvac Group of Westpac Office Trust and Mirvac REIT.

Another highlight for the firm was its role on the syndicated leveraged finance facilities for Archer’s US$270 million acquisition of GullPetroleum.

The banking and finance practitioners at international law firm Baker & McKenzie “are always on top of issues and we find them to be not just legal but very commercial as well”, says one client. The firm had another busy year filled with transactions.

The highlight deal for the firm was advising Kohlberg Kravis Roberts, as a stakeholder in the Seven Media Group (SMG), on the sale of its stake in SMG to West Australian Newspapers Holdings for US$4.4 billion. In particular, the firm advised on the implications under SMG’s senior and subordinated facilities arising from.the sale.

Corrs Chambers Westgarth’s lateral hire of partner Brad Robinson from Mallesons Stephen Jaques, together with Jeremy King’s arrival from Blake Dawson, expands a team that acts for leading banks and corporations. The firm has benefited from the recent growth in restructuring mandates.

A notable highlight last year was advising on a US$498 million transaction involving a large number of syndicate banks, assets and security providers across a number of countries.

“Henry Davis York is in the category of trusted adviser,” says one client. “I call it when I need help. It is my safe pair of hands for when I’m in trouble.” One notable transaction was acting for a syndicate of eight senior lenders to the Redcape Property Group in connection with the review, restructure and refinancing of Redcape’s existing US$864 million debt facilities.

Norton Rose is described by one client as being “very reliable with its advice”. The firm “always makes itself available regardless of time and turnarounds, and this is what separates it from other law firms”, adds the client.

The firm advised China Construction Bank on its successful application to the Australian Prudential Regulation Authority for the granting of a foreign bank branch licence in Australia. CCB is one of the world’s largest banks and only the third Chinese bank to be granted a foreign bank branch licence in Australia.

Allen & Overy

The Grant Fuzi led team at Allen & Overy is starting to make an impact in the Australian banking and finance space. The firm advised JP Morgan, Banco Santander, Barclays, BNP Paribas, Royal Bank of Scotland and Toronto-Dominion Bank on the corporate finance aspects of a US$45 billion loan facility as part of the financing for BHP Billiton’s bid to acquire Potash Corp of Saskatchewan.

DLA Piper

DLA Piper’s banking and finance team is making major progress in this sector. One client of the practice says: “We have a long standing association with the firm and are entirely comfortable with the professional and pronotable work of the partners and support staff.”

Deal highlights included advising Westpac Banking Corporation on a syndicated warehouse finance repurchase facility for Emerald Grain Australia. This was an innovative and time-critical facility with a number of structuring challenges such as material GST issues.

Johnson Winter & Slattery

Johnson Winter & Slattery’s finance practice specialises in finance borrowing and sponsorship. The firm acts for Australian and international entities on high profile complex acquisitions, projects and cross border finance transactions. Last year saw the firm continue its advising role for the SEA Gas Partnership on the refinancing of its US$450 million project debt facility.