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

Bell Gully has a “highly regarded banking practice”, says one client. This national powerhouse law firm has “a very good knowledge and understanding of the alternatives”, says the same client.

Partners Hugh Kettle and Murray King are “the heart and soul of the team”, says one competitor. They lead a practice that is highly praised for its work, “with clear suggestions on pros and cons options”.

Over the last 12 months, a highlight for the team was advising SKYCITY Entertainment Group on its US$331 million syndicated refinancing and US private placement. The Group, an entertainment and gaming business, sought to enhance its debt profile by negotiating new and extended flexible funding facilities on attractive terms.

The firm also advised Motor Trade Finances on its securitisation structure to ensure funding requirements were met after a shift in investor sentiment undermined previous funding sources. This was the first rated note issue from a securitisation trust in the New Zealand market since the global financial crisis.

“We have used Chapman Tripp for 20 years for its excellent banking work, technical skill and very current market knowledge,” says one client. A competitor says the team “deserves its top tier status” for continued excellence.

A notable highlight for the team was advising Bank of New Zealand, Commonwealth Bank of Australia and Bank of Tokyo Mitsubishi UFJ on unsecured bilateral facilities totalling NZ$414 million (US$340 million) to Genesis Energy. This complex transaction included an agreement among lenders and a hybrid deal model between a bilateral and a syndicated lending structure.

The team ended the year advising ANZ Banking Group in its refinancing of dairy firm Synlait Milk, following an equity investment by one of China’s largest dairy companies Shanghai-based Bright Dairy. This US$134.2 million investment was settled following approval from the Chinese Government and the fulfilment of all regulatory conditions.

Mayne Wetherell is “a top banking and finance firm, one of the best in New Zealand”, says one client. Renowned for “its very high standards in the practice”, the team has continued its “excellent banking and finance work”, says one client.

The team acted for Bank of New Zealand and Westpac in respect to the US$165.7 million standby facility for Combined Building Society. This unique transaction with Combined represents the merger of Marac Finance with Southern Cross Building Society and Canterbury Building Society.

Another deal highlight was acting for 2degrees, the new mobile telecommunications company in New Zealand, in relation to project financing to fund the expansion of its mobile network. The successful financing will allow 2degrees, which has quickly developed market share in the New Zealand mobile telecommunications market, to mount a strong challenge to the two large incumbents.

“Buddle Findlay’s strength is its efficient project management skills, its ability to take over a banking process, and manage the client and its lawyers”, says one client. The team houses “very good knowledge, and its expertise is applied as effectively as possible”.

Over the past year, the team advised Bank of India on becoming a registered bank in New Zealand. Registered bank status is difficult to achieve in New Zealand with the Reserve Bank of New Zealand imposing high thresholds for compliance. Bank of India is the only bank to have been registered in New Zealand over the last 12 months and joins only 19 other registered banks.

Other notable transactions included advising REDgroup on the US$43.2 million refinancing of the company’s senior debt and the redemption of its New Zealand Exchange listed notes on maturity.

“Minter Ellison Rudd Watts demonstrates excellent knowledge, expertise and innovation in banking and finance,” says one client.

The firm contains “an experienced team of partners and solicitors who demonstrate strong technical expertise by providing concise, reliable, direct and commercial advice”, one client comments. Among the partners, Kate Lane is “an outstanding and accomplished legal adviser, whose high quality work inspires confidence in her legal advice”.

The past year saw the team advising the treasury guarantee of South Canterbury Finance (SCF) and its payout. This NZ$1.8 billion transaction was significant because it involved the Crown changing the basis on which it had previously provided support to investors under the deposit guarantee scheme.

“Russell McVeagh is New Zealand’s market leader in banking and finance”, says one client. Highly regarded partner Guy Lethbridge is “very knowledgeable and an all round great practitioner”, adds a competitor.

The Russell McVeagh team acted for the banking syndicate on the financing of the acquisition by an Infratil / Guardians of New Zealand Superannuation consortium of Royal Dutch Shell’s downstream New Zealand assets. The US$497 million financing was New Zealand’s largest and most significant acquisition of 2010.

Another notable highlight was acting for a banking syndicate on the US$238 million expanded financing of the Britomart precinct in Auckland’s CBD. This complex transaction involved construction financing of the oriental car park and the refinancing by two separate bank syndicates under a shared security structure. This included two pools of security for the existing funding of a highly complex underlying leasehold structure.

“A standout trait of Simpson Grierson is that every material banking transaction has a banking partner assigned to it who is intricately involved,” says a client. The same client adds: “I view the level of service at the firm to be collaborative and one of a trusted adviser.”

Star partner Andrew Harkness is recognised as a leading banking and finance lawyer and is, says a client, “an expert at covering leveraged finance and other complex lending transactions”.

Last year’s highlight was advising UniCredit Bank AG on a US$2.49 billion syndicated lending. The transaction included the merging through bespoke legislation of eight separate security trust and debenture trust deeds into one replacement debenture trust deed for Auckland Council.

DLA Phillips Fox is “quick to provide knowledgeable banking advice”, says one client. This globally-connected law firm had a busy year advising Foodstuffs Auckland Group in securing a US$249 million syndicated multi option facility by ANZ Banking Group, National Bank, Bank of New Zealand, Westpac Banking Corporation and CBA. The team was also able to secure a US$83 million working capital facility to Foodstuffs Finance (Auckland) Limited from CBA.

“Excellent, thorough and ahead of other firms in analysing the impact of new banking and finance legislation,” says one client of Kensington Swan’s banking practice. The team acted as legal adviser to trustee Perpetual Trust on the establishment of the NZ Funds KiwiSaver Scheme. The Scheme was established in a market that is highly competitive and widely expected to undergo significant product and provider consolidation, and at a time when very few new products were being developed or being brought to market.