Allens, together with alliance partner Linklaters, has advised J.P.Morgan Securities plc as the lead manager on the A$650 million SGX-listed convertible bond issuance by ASX-listed Telix Pharmaceuticals Limited.
Allens and Linklaters also advised the lead managers on recent offshore convertible bond issuances by ASX-listed companies Xero Limited (US$850m, June 2024) and New Hope Corporation (A$300 million, July 2024).
Convertible bonds are a viable alternative source of funding for listed companies. As a hybrid instrument, they are typically cheaper than traditional debt financing. They also minimise dilution for shareholders, as conversion premiums on the bonds have typically been set at around 30% above the reference price (set by reference to the prevailing share price at the time of launch).
‘Notwithstanding a relatively flat Australian ECM market, we have been fortunate to have worked with our lead manager clients and Linklaters on these convertible bond transactions by ASX-listed entities and expect other issuers to consider similar transactions for their funding needs in the future,’ said Partner and Co-Head of the Allens ECM team .
In addition to the above transactions, Allens has advised on numerous convertible bond transactions in recent years, including offerings by Xero in 2018 and 2020, Afterpay in 2021, Zip in 2021, New Hope in 2021, Washington H Soul Pattinson in 2021 and Dexus in 2022, and on the unique exchangeable bond issued by Seven Group (in relation to Boral shares) in 2022.
