13 January 2014
Clifford Chance advises OCP Asia on arrangement of US$65 million in notes and warrants as financing for Guildford Coal Limited
Clifford Chance has advised OCP Asia on its arrangement of and subscription for US$10 million in convertible notes and US$55 million in amortising notes, together with detachable warrants equal to 18.5% of the face value of the amortising notes, as financing for Australia's Guildford Coal Limited (ASX: GUF).
The transaction is particularly notable for the complexity of the instruments (both series of notes are secured and listed through Euroclear) and for bespoke terms that incorporate a number of novel features more commonly seen in Asian markets.
OCP is one of the leading funds in Asia, while ASX-listed Guildford Coal Limited is an emerging resource explorer with a large portfolio of projects in Queensland, Australia and Mongolia.
Clifford Chance partner Scott Bache said: "This transaction, hot on the heels of the Sundance transaction, signifies that international investors are actively interested in providing capital to the Australian resources-based sector. It also highlights a new trend – that private equity and hedge funds, particularly those in Asia, are prepared to fund the development of resources projects by Australian companies.
"With traditional sources of capital increasingly difficult to obtain in the resources sector, companies and projects that can cater to the needs of this new category of investor will have wider funding options in 2014."
Partners Scott Bache and Lance Sacks led the team advising OCP Asia, which included senior associate Mark Gillgren and associates Owen Thomas, Nelda Turnbull and Marcus Ap.