KWM advises on $880m credit card distribution deal

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King & Wood Mallesons acted for Citi on a 10-year deal to distribute Wesfarmers’ Coles branded credit cards.
Citi will acquire the existing credit card receivables of about $880 million and Coles will receive a share of the risk-adjusted revenues.
The KWM team was led by Partners Katherine Forrest and David Eliakim who worked alongside Shabarika Ajitkumar, Jennifer Cheung and Rebecca Coventry.
Specialist advice was provided by Katrina Parkyn, Tim Sherman, Stuart Courtney and Joseph Power (stamp duty and tax); Michael Swinson and Kathryn Purcell-Hennessy (IP); Karen Coleman and Veronica Oh (contractual enforceability); Wayne Leach and Jodi Gray (competition), Paul Smith and Daniel Bragg (securitisation) and Malcolm Brennan and Alexandra Smith (FIRB).
“The transaction is unique in this market as it involves the sale of a credit card loan book by an owner while the book is being serviced (and will continue to be serviced for a period) by a third party operator,” said co-lead partner Katherine Forrest.

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