Gilbert + Tobin has advised Sembcorp Industries (Sembcorp) on a landmark $3.1 billion club facility to support its approximately $6.5 billion acquisition of the Alinta group.
Sembcorp is one of Asia’s leading energy and urban solutions providers, with a strong track record in renewables and a focus on supporting the global energy transition. Alinta is one of Australia’s major energy businesses, with a diversified retail and generation platform supporting households, businesses and wholesale energy customers.
The acquisition required a financing platform that could provide certainty of funding for completion, while giving the enlarged business the flexibility to operate and grow after completion. The facilities were designed to fund the acquisition, refinance existing group debt and provide ongoing liquidity and operational flexibility.
G+T worked closely with Sembcorp, and their financial advisors, DBS Bank, to deliver a borrower-led syndicated platform across lenders in Australia and Asia. The transaction required careful coordination of multiple lenders, branches, facilities and jurisdictions under an accelerated timetable, as well as ensuring post-completion operational flexibility and continuity of existing working capital, capital expenditure and other funding lines for the Alinta group following completion.T
he team was led by Partner and Co-head of Real Assets Stuart Cormack, with support from lawyers Stephen Adrian and Hannah Townley.
Stuart Cormack commented:
We were very pleased to support Sembcorp on this landmark acquisition financing. Transactions of this scale require a platform that delivers certainty of funding and flexibility for the future. It was great to help Sembcorp to achieve this objective and to be a part of the start of its very exciting growth into Australia.
