Freehills advised Elders Limited (Elders) (ASX:ELD) on its recently announced combination of debt refinancing, equity raising and asset sale transactions.
Elders has been in a process of rapid change to return the group to its core business of agricultural services under the Elders brand. The group has been working to refinance its debt facilities and US private placement notes and repair its balance sheet via asset sales and capital raising.
Freehills’ partner Al Donald said, ‘The Freehills team has brought M&A, ECM, banking and finance and restructuring expertise to bear in order to support Elders through this process. Taken together, the transactions highlight the combination of skills and commitment required to manage a turnaround and de-leveraging in a complex corporate group.’
The Freehills team advising Elders included:
- Corporate partners Al Donald and Kristin Stammer, senior associate Rob Bileckij and executive counsel Melanie Bouton advised on the sale of Elders’ general insurance business to QBE and establishment of a new joint venture for the ongoing distribution of general insurance products (including the sold business) via the Elders’ rural network.
- Corporate partner Damien Hazard advised on the sale of ITC Timber to Gunns Limited.
- Banking partner Hayley Neilson advised on the negotiations with Elders’ bank lenders and US private placement noteholders for a restructured debt package consisting of permanent term debt facilities and notes (with maturities of three years and over), asset sale bridges, equity bridges and a revolving credit facility and transactional banking facilities for working capital needs.
- Corporate partners Philippa Stone and Rebecca Maslen-Stannage, and senior associate Daniel Scotti advised on the ECM components, including an institutional placement and a novel share purchase plan. The proceeds of the equity raising will be used to repay Elders’ debt and strengthen its balance sheet.
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