Herbert Smith Freehills advises Gateway on its A$120 million entitlement offer and placement

Herbert Smith Freehills is delighted to have advised Gateway Lifestyle Group (Gateway) on its A$120 million fully underwritten 2 for 15 accelerated pro rata non-renounceable entitlement offer and institutional placement of stapled securities, comprising units in the Residential Parks No. 2 Trust and shares in Gateway Lifestyle Operations Limited, announced to the ASX on 9 March 2016.

The entitlement offer consists of an accelerated institutional rights issue and a retail rights issue of stapled securities, at an issue price of A$2.40 per new security.

The proceeds from the offer will be used by Gateway to fund the acquisitions of six secured Manufactured Home Estates and to repay debt to strengthen its financial position to deliver its business plan.

The Herbert Smith Freehills team was led by partners Philip Hart and Philip Podzebenko, assisted by solicitors Ben Robinson, Tara McNamee and Hayden Guthrie and graduates Elizabeth Cameron and Catie Moore.

Mr Hart said “Herbert Smith Freehills is delighted to have been able to advise Gateway on this significant capital raising. Gateway has been active in pursuing its acquisition strategy and we look forward to working with Gateway as it continues to develop and realise its strategic objectives. ”

The offer is fully underwritten by Macquarie Capital (Australia) Limited and UBS AG, Australia Branch.

Herbert Smith Freehills’ capital markets team is number one in Australia by deal count and deal volume (Bloomberg 2015 – IPO Issuer Advisors and Thomson Reuters 2015 – Equity & equity-related, Issuer Advisors).

Herbert Smith Freehills’ capital markets team has also recently acted for:

• Spark Infrastructure Group on its A$405 million entitlement offer in relation to the $10.258 billion acquisition by Spark (as part of a consortium) of the TransGrid high voltage electricity transmission network;
• NEXTDC Limited on its A$120 million ANREO entitlement offer and placement;
• The Commonwealth Bank of Australia on its A$5 billion PAITREO entitlement offer;
• The Joint Lead Managers on Westpac’s A$3.5 billion PAITREO entitlement offer; and
• AGL Energy Limited on its A$1.2 billion PAITREO entitlement offer.