NEWS

Allens advises REST on its first direct debt investment

By Warwick Newell
Banking Financial Services Royal Commission Funds Superannuation

Allens has acted for Australian superannuation fund REST Industry Super (REST) to achieve completion of its first direct debt investment. 

The deal was led by Allens banking and finance Partners Warwick Newell and Michael Ryan and Senior Associate Lisa Zhou.  Geoff Sanders, a Partner in Allens' funds management team, provided key funds management structuring advice.

The transaction involved REST directly lending to Transurban Queensland, which was acquired by a Transurban-led consortium in 2014 for A$7.057 billion.  The debt will be used to partly pay down existing senior bridge debt of Transurban Queensland.

With a tenor of 15 years, the A$200 million senior secured debt facility provided by REST has one of the longest tenors of senior debt facilities provided in the infrastructure sector in recent times.

Mr Ryan said: 'While we have seen an increased level of direct equity investment by superannuation funds in the infrastructure sector in recent years and some direct senior debt investment by specialist fund managers, direct senior debt investment by superannuation funds in Australia is far less prevalent.

'Given the greater demands placed on the private sector to fund infrastructure and the ever-increasing pressure for Australia's superannuation industry to play a significant role in assisting that funding need, we expect that the direct debt investment by REST to Transurban Queensland will be keenly analysed by many in the Australian superannuation funds industry and, more broadly, by Australia's infrastructure sector.

'The Allens team is proud to have worked alongside REST and with Transurban Queensland on such a groundbreaking transaction that further evidences the evolution of the Australian superannuation funds industry and its direct role in funding infrastructure in Australia.'

Allens legal team

Banking and Finance – Warwick Newell (Partner), Michael Ryan (Partner), Lisa Zhou (Senior Associate), Amanda Sie (Associate) and Nikita Oddy (Lawyer).
Funds Management – Geoff Sanders (Partner).

Ends

Notes for editors.

Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 40 offices in 28 countries around the world.