30 September 2016
Clifford Chance advises on pioneering all Australian dollar Term Loan B financing
Leading international law firm Clifford Chance has acted as lead counsel to British banking and financial services provider Barclays as arranger of a AUD250 million Term Loan B financing for Iron Mountain Australia Group Pty Ltd, a wholly owned subsidiary of Iron Mountain Incorporated (NYSE: IRM), the storage and information management services company.
The team was led by Banking & Finance partner Richard Gordon, who was assisted by counsel Alastair Gourlay and associates Adrian Blacker, Dean Bao and Munpreet Soomal.
Commenting on the deal, CC partner Richard Gordon offers, "This transaction represents a number of firsts for the Australian market, both in terms of being the first all Australian dollar Term Loan B, governed by Australian law, but also in its precedent setting structure where local Australian security was supplemented by a synthetic collateral allocation mechanism (CAM) across to Iron Mountain's US credit facilities.
"This innovative structure enabled Iron Mountain to leverage its global credit and access the local Australian institutional markets on a covenant-lite basis. The deal also demonstrates Barclays thought leadership and innovation in the TLB space in Australia. Our team complements this status through the delivery of market leading global financing solutions to the Australian market."
Iron Mountain has disclosed that the loan matures in September 2022 and bears interest at Bank Bill Swap Bid Rate (BBSY) plus 4.25%. The lending syndicate consists of a broad range of institutional investors including a number of Australia’s leading superannuation funds. Barclays Bank PLC, Credit Agricole Securities (USA) Inc., and HSBC Bank Australia Ltd acted as joint lead arrangers and joint bookrunners with Barclays Bank PLC acting as sole syndication agent.