The deal shows the firm’s ability to deliver during unprecedented market conditions, the firm says
DLA Piper has advised on the first raising to use the new ASX class waiver relied unveiled at the end of March to support companies during the COVID-19 crisis.
The global law firm advised Webjet on its $346m equity raising, which was conducted via an institutional placement and an accelerated pro-rata, non-renounceable entitlement offer. Goldman Sachs Australia, Credit Suisse Australia, and Ord Minnett fully underwrote the offer.
Corporate partners Joel Cox and David Ryan and banking and finance partner David Lyons headed the DLA Piper team, which also included special counsel Jennifer Whincup and Kelly Morrison, solicitors Shane Berkery, Cassian Ho, and Ellie Harding, and graduate Charlie Lian.
“The coronavirus health crisis and associated government travel restrictions have resulted in a significant reduction in global travel activity. The proceeds of this equity raise will be used to strengthen Webjet’s balance sheet during this time,” Ryan said.
Ryan, DLA Piper’s head of equity capital markets, also explained what made the raising significant for both the Australian market and the firm.
“This was the first placement and entitlement offer to utilise ASX’s class waiver relief, which was issued by ASX on 31 March 2020 to support listed companies during the COVID-19 pandemic. This is one of many examples where DLA Piper is able to successfully deliver for our clients in these unprecedented market conditions,” he said.
DLA Piper said that the institutional placement and the institutional component of the entitlement offer have completed and raised about $231m. The institutional component was well supported, with about 90% take-up by eligible institutional shareholders, the firm said.
The firm also pointed out that the transaction was completed in difficult market conditions for its client, which has been considerably impacted by travel restrictions related to the pandemic.
DLA Piper also advised on the implications of travel restrictions on the client’s banking facilities and on alternative financing options.