Major law firm acts on $400 million hybrid offering

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Strong hybrid market predicted following the first corporate hybrid ‘to come to the market in a while’.
Crown Resorts Limited has announced the release of a $400 million hybrid offering.
Advising the lead managers on the offering was King & Wood Mallesons, who also advised on Crown’s hybrid offering in 2012.
Heading up the King & Wood Mallesons advisory team was partner David Friedlander, who said the market is likely to see an increase in hybrid offerings over the next twelve months.
“Investors are crying out for this type of product in the current low interest rate environment, so we expect to see a healthy hybrid market this year.”
Friedlander said the proceeds raised in the deal will rank equally to notes issued in the Crown’s last hybrid offering.
“This is the first corporate hybrid to come to market for some time. It follows the first domestic bank hybrid launched by Australia and New Zealand Banking Group Limited this year,” he said.  “The transaction is significant as, once issued, the subordinated notes will rank equally with the Crown Notes issued in their August 2012 offering.”
Crown Resorts will use the proceeds to finance the growth of upcoming projects.
“The proceeds will be used for general corporate purposes including financing Crown Sydney, Crown Towers Perth and other anticipated growth projects,” said Friedlander.