The transaction is the largest non-bank securitisation in New Zealand
Russell McVeagh has advised asset finance business UDC in a historic transaction involving a $2bn securitisation—the largest non-bank securitisation in New Zealand.
The “landmark” AAA-rated auto and equipment finance-backed syndicated securitisation programme is “a stapled financing to ANZ's sale of UDC to Shinsei Bank, funding into the completion of the share sale,” the firm said.
The Russell McVeagh team assisted in the structuring, syndication and implementation of the deal. Partner Deemple Budhia led the team, coordinating with senior associate Jesse Fairley.
Partner Fred Ward advised on the tax aspects of the transaction. Senior associates Lucy Becke and Ling Yan Pang provided additional support alongside solicitors James Horner and Millie Bidwill.
The firm said that it was “delighted to have assisted UDC with the establishment of its new debt capital structure and to see the transaction come to a successful close.”
UDC said that Russell McVeagh “more than rose to the challenge of delivering this transaction when you take into consideration the pressure of an M&A timeline and structuring the programme to accommodate the varied range of products UDC provides finance for, in circumstances made even more difficult due to the significant disruption created by COVID-19.”
“The quality of advice UDC received on this transaction from Russell McVeagh is well demonstrated by the high level of participation from the six lenders in the syndication group,” UDC said.
The company said that this participation generated a favourable result, with “$2bn billion of funding secured across the two securitisation warehouse structures.”
“We have been delighted to have the Russell McVeagh team involved in successfully bringing this exciting and significant transaction to the New Zealand securitisation market,” UDC said.
Russell McVeagh worked on this transaction while also facilitating the completion of the UDC sale.