Allens assists Liontown Resources with billion-dollar debt and equity package

The landmark package will fund "one of the world's most significant new long-life lithium projects"

Allens assists Liontown Resources with billion-dollar debt and equity package
Bryn Hardcastle and Guy Alexander

Allens has advised Liontown Resources on a landmark $1.2bn debt and equity package that is set to fund the Kathleen Valley Lithium Project.

Allens described the project as “one of the world’s most significant new long-life lithium projects.” The debt and equity package includes a $760m debt funding package and a $420m equity raising.

Liontown said in an ASX announcement that the debt and equity proceeds will be allocated towards the following:

  • refinancing the existing Ford debt facility (plus capitalised interest)
  • funding the remaining capital costs for Kathleen Valley, including early mine development for acceleration and costs associated with building the preproduction ROM stockpiles
  • covering corporate costs and working capital (including capitalised interest and fees)
  • providing prudent liquidity through to first production and beyond

For the debt funding package, Liontown secured the participation of eight international and domestic banks as well as government credit agencies. These include ANZ, CBA, HSBC, NAB, Société Générale, Westpac and the CEFC.

A number of these institutions had yet to provide debt to lithium companies.

Allens said that the $420m equity raising comprised “a fully underwritten institutional placement of $365m, a non-underwritten conditional placement for $10.8m to a director and a non-underwritten share purchase plan to raise up to a further $45m.”

The Allens team, led by partners Bryn Hardcastle and Guy Alexander, is advising Liontown on all aspects of the Kathleen Valley Lithium Project and its funding. In addition to Alexander and Hardcastle, the team consisted of the following:

M&A

Charles Ashton (partner)
Bree Rowswell (managing associate)
Alex Ninkov (senior associate)
Emma Morris (senior associate)
Alex Knights (associate)
Alex Forster (associate)

Equity capital markets

Julian Donnan (partner)
Addison Ma (senior associate)
Jesse Lines (associate)
Nic Ruhbach (lawyer)
Francesca Bailey (lawyer)

Project financing

Rod Aldus (partner)
Ben Farnsworth (partner)
Alastair Henderson (senior associate)
Megan Lee (lawyer)  

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