Clayton Utz has advised Leighton Holdings Ltd., Australia’s largest project development and contracting group, on a $1.5 billion syndicated facility to provide surety bonds.
The three-year facility both refinances and doubles an existing $733 million facility. The company regularly requires such performance bonds for its construction contracts.
Australia and New Zealand Banking Group Ltd. acted as sole coordinating bank on the transaction, and served as lead representative for 15 of the 19 financiers in the facility. ANZ also joined The Hongkong and Shanghai Banking Corporation Ltd., Mizuho Corporate Bank Ltd., and The Royal Bank of Scotland Plc as leader arranger and bookrunner.
Clayton Utz partner Brad Allen represented Leighton Holdings, while Allen & Overy partner Christopher Robertson acted for the arrangers and bookrunners. Both partners work out of Sydney.
The refinancing of its surety facility is part of an aggressive effort by Leighton to restructure its debt load in the face of series of write-downs due to project delays.
As part of that effort, Leighton this week also issued $500 million in 10-year notes in the United States as part of its debt-management strategy. Sullivan & Cromwell advised Leighton on U.S. law for the transaction.
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