Corporate and Commercial Transactions

Banking and finance deals require specialist knowledge of corporate and commercial transactions to ensure effective structuring that manages risk appropriately and ensures success. Examples of transactions that have benefitted our corporate and commercial expertise include:

Resolute Mining Limited - financing aspects of the sale of Ravenswood Gold Mine to a consortium, including the $50 million promissory note issued to Resolute as noteholder, which formed part of the consideration for the sale.
Perth Radiological Clinic - advising on debt financing arrangements for the business, in connection with the minority investment of Allegro Funds.
A South West timber producer - A$49.2 million multi-option facility with ANZ.
Macmahon Holdings - advice on financing issues related to the acquisition of the GBF Underground Mining Group.
Dacian Gold Limited – asset pushdown for project financing
Perth Radiological Clinic - ownership restructure with I-Med Network Limited
Doray Minerals Limited – asset pushdown for project financing
Alkane Resources Limited - sale of its interests in the Orange (NSW) JV assets (by share sale) to Regis Resources Limited in conjunction with its JV partner Newmont
PetroChina - acquisition of Queensland coal seam gas assets of Molopo Energy Limited by share acquisition (A$41 million)
Kingsrose - acquisition of the Way Linggo gold and silver project in Indonesia
Resource Capital Funds - various public and private share and business acquisitions

Spotlight on getting your project ‘finance-ready’: ring-fencing project assets

Project financing is traditionally regarded as the financing of an asset where the lenders are repaid from the revenue generated by the asset and, once the assets are revenue positive, the lenders rely on the asset as their sole collateral for the loan.

Lenders will often require completion guarantees from the parent until construction of the project is complete and is cashflow positive. When the completion guarantee falls away, the lenders’ recourse should be limited to the project itself – that is, they cannot gain access to the other revenues or assets of the parent company.

In line with this, the conventional project finance structure involves the project being held in a subsidiary (a special purpose vehicle). This has the advantages of reducing the risks to the project (i.e. by removing any other business or liabilities of the corporate group which could affect it). It also allows the parent company to continue to undertake other business.

If you are interested in getting your project ‘finance-ready’ and ring-fencing project assets, contact us for advice. Read the full article on ring-fencing assets here.