Syndicated loans were one of the first casualties of the global financial crisis, but a recent deal where Felix Resources secured three syndicated facilities totalling A$250m shows that banks are willing to take on syndication risk once more.
The finance arrangement in the Felix deal comprised three syndicated facilities: a five-year term loan; a contingent liability facility; and a working capital facility. There was also a separate A$119m syndicated leveraged leasing facility to finance mobile equipment leases.
Gilbert + Tobin partner John Schembri advised the five banks on the deal. “We are seeing the return of syndicated facilities as an attractive method of financing, particularly for good-quality borrowers with strong cashflows,” he said. The transaction included undertaking full due diligence and drafting and negotiating facility documentation.
G+T has also recently advised a banking syndicate in Hastings Funds Management’s acquisition of two government-owned airports in Queensland.
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