KWM, Baker McKenzie guide first TLB finance to pass $1bn mark in Australia

The $1.165bn raise is part of the $2.45bn sale

KWM, Baker McKenzie guide first TLB finance to pass $1bn mark in Australia

King & Wood Mallesons (KWM) and Baker McKenzie have confirmed their roles in a deal that involves the biggest all-Australian dollar Term Loan B (TLB) finance in Australian history – and the first to pass the $1bn mark.

Global investment firm EQT Infrastructure initiated the $1.165bn raise to fund its acquisition of major integrated cancer care provider Icon Group for $2.45bn. According to Baker McKenzie, who advised the lead arrangers and first and second lien lenders, the landmark financing was split into a $786m first-lien TLB, $100m delayed draw term loan, $100m revolving credit facility and privately placed $179m second lien TLB.

Morgan Stanley, Barclays, Credit Agricole, MUFG, Goldman Sachs, HSBC and ING were the joint lead arrangers on the finance, while the mandated lead arrangers were Bank of China, KB Securities and Korea Investment & Securities.

“Breaking the $1bn mark is significant for the Australian market and is testament to a private credit market that continues to boom in Australia,” Baker McKenzie lead partner Alastair Gourlay said. “The lender group ended up being a diverse mix of financial institutions, private credit funds and other institutional capital from across Australia, APAC and further afield.”

Gourlay received support from senior associate Dean Bao and associate Joshua Donald. The team worked alongside Cahill Gordon & Reindel as co-counsel.

Meanwhile, KWM advised EQT alongside Latham & Watkins. A KWM team headed by partner Alex Elser guided the acquisition, while a KWM team helmed by partner Yuen-Yee Cho guided EQT on the raise.

Elser was assisted by special counsel Megan Coall and solicitors Tom Kingston and Deen Khan, as well as by tax partner Tim Sherman. Cho was supported by senior associate Stephen Sharpe and solicitors James King and Sachin Kinger.