Herbert Smith Freehills has advised the Independent Board Committee of Energy Resources of Australia Limited (ERA) on its successful 5 for 1 pro-rata renounceable entitlement offer with a subsequent shortfall facility and shortfall bookbuild, raising $369 million for ERA.
The proceeds will be used to fund ERA's planned Ranger Project Area rehabilitation expenditure and repay the Rio Tinto Credit Facility.
ERA successfully obtained A$355 million in pre-commitments from its major shareholders, Rio Tinto, Packer & Co and Zentree Investments Limited, and while not underwritten, the entitlement offer was 98.5% subscribed for and the shortfall facility was oversubscribed, with demand from eligible shareholders having to be scaled back.
The Herbert Smith Freehills team was led by partners Philippa Stone and Andrew Rich, together with senior associate Samuel Moran, and solicitors Ting Fan and Nicole Sung. The team was also supported by the expertise of partner Melissa Swain-Tonkin and senior associate Claire Thompson.
Philippa Stone said, "We are delighted to have been able to advise the Independent Board Committee on such a highly successful raising, which presented a number of unique challenges and complexities. The Independent Board Committee and ERA management successfully navigated these, and it has been our pleasure to be part of the team."
Andrew Rich commented, "We are proud to have supported the Independent Board Committee to deliver for all shareholders at such an important time for the Company."
Highbury Partners acted as financial advisers to the Independent Board Committee, and Ashurst advised ERA. Euroz Hartley acted as nominee under section 615 of the Corporations Act and broker to the offer.
