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23 July 20203 minute read

DLA Piper advises Webjet on EUR100 million convertible notes offering

Global law firm DLA Piper has advised Webjet Limited (ASX: WEB) on its EUR100 million (approximately AUD163 million) convertible notes offering which settled on 10 July 2020. 

The notes will be listed on the Official List of the Singapore Exchange Securities Trading Limited comprising direct, unconditional, unsubordinated and unsecured notes due 2027.

The transaction was completed in difficult market conditions for Webjet, given the considerable impact to its business from COVID-19 related travel restrictions. The funds raised are in addition to AUD346 million raised by Webjet in April, by way of a placement and entitlement offer on which DLA Piper also advised.

DLA Piper’s team was led by Singapore based Corporate partner Philip Lee and Australian Corporate partner Joel Cox, with key support from David Lyons, David Ryan, Jennifer Whincup, Simon Rimmelzwaan and Mei Sum Chan.

Philip Lee said: "The net proceeds from this offering will help diversify Webjet’s funding sources and support our client’s ongoing efforts to maintain a strong balance sheet in this highly uncertain operating environment.

We’re seeing significant interest in convertible bonds by investors given depressed share prices in the current environment, particularly for companies which have long-term growth fundamentals but currently have temporary depressed valuations due to COVID-19."

Joel Cox said: "Convertible notes are a common funding source for North American companies, however they are less common in Australia. We see strong rationale for ASX listed mid cap companies to access corporate bond investors with a similar structure."

Goldman Sachs International acted as sole global coordinator and joint bookrunner and HSBC acted as joint bookrunner.