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Allens advises Australia's largest listed investment company on capital raising

16 November 2011

Allens Arthur Robinson (Allens) has advised Australia's largest listed investment company, Australian Foundation Investment Company Limited (AFIC), on a capital raising to the value of $200 million (with the ability to raise more or less).

One of Australia's oldest investment companies, AFIC has a market capitalisation of $4.2 billion and has been specialising in investing in Australian equities for more than 80 years.

Under the deal, announced on 14 November, AFIC will issue $200 million worth of unsecured convertible notes. The notes will carry a coupon of 6.25 per cent and can be converted into AFIC shares at a 25 per cent premium to the pre-issue share price.

Partner Steve Clifford, who led the Allens team on the transaction, said that AFIC will reserve a minimum allocation of $150 million for its shareholders to participate in the offer.

'It was great to work with AFIC to finalise the deal within a much shorter timeframe than is usual for an offer of this kind,' Mr Clifford said.

'Allens has acted for AFIC for most of its long life and we look forward to continuing to work with them into the future.'

Allens legal team Steve Clifford (Partner – Melbourne), Gadi Bloch (Special Counsel – Melbourne), Susie Wells (Special Counsel – Melbourne), David Batten (Lawyer – Melbourne), Louisa Wen (Lawyer – Melbourne), Samantha Samuel (Lawyer – Melbourne), Daniel Elliott (Lawyer – Melbourne), Bevan Mailman (Lawyer – Melbourne), Bridget Little (Law Graduate – Melbourne)

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Notes for editors.

Allens Arthur Robinson has staff in 14 cities and eight countries across the Asia Pacific.