NEWS

Allens advises Sydney Airport on $2bn equity raising

Banking & Finance Infrastructure & Transport

Allens has advised Sydney Airport on its $2 billion equity raising, structured as a fully underwritten pro rata accelerated renounceable entitlement offer, with retail rights trading (PAITREO).

'This entitlement offer represents decisive action by Sydney Airport to address not only its liquidity and balance sheet, but to enable it to pursue potential growth opportunities should they arise in the future. We are honoured to have worked alongside Sydney Airport, a long standing client of Allens, as it safeguards its future in these uncertain times', said lead Partner Julian Donnan, Allens co-head of Equity Capital Markets (ECM).

The offer is the first PAITREO offer by an issuer since the onset of the COVID-19 pandemic (and the first in 2020). The PAITREO structure is designed to provide fairness for all securityholders, in particular retail securityholders, as it allows retail securityholders to potentially receive value for their entitlement throughout the offer period.

'Whilst most issuers in recent months have adopted a placement / SPP or accelerated non-renounceable entitlement (ANREO) offer structure for their equity raisings, Sydney Airport stated that they had chosen the PAITREO structure as it was the fairest structure for all securityholders', said Robert Pick, Allens co-head of ECM.

Allens has worked with a number of issuers and underwriters in raising approximately $16 billion since the onset of the COVID-19 pandemic, including raisings by National Australia Bank, QBE, Oil Search, Vicinity, Qube, Flight Centre, G8 Education, and Burson.

Allens legal team

Department

Julian Donnan (Lead Partner, Co-Head of ECM), Robert Pick (Partner, Co-Head of ECM), Marc Kemp (Partner), Addison Ma (Senior Associate), Lisa Gao (Associate) and Jewel Zhu (Associate)

Ends