The Canadian bigwig has Barclays, Morgan Stanley and UBS pitching banks and credit funds for a $550 million debt deal, in what shapes as an interesting litmus test for Australia’s leveraged finance market.
Although it’s early days, investors are into due diligence on the proposed A-TLB structured deal, while talking pricing with Brookfield and its bankers. Commitments are due in mid-July.
It’s the sort of deal that happens only a few times a year in Australia – but will be used as a reference price for plenty of other potential private equity bids that may or may not take place in the coming six months.
Brookfield has begun passing the hat for the debt slice in its $1.6 billion acquisition of Melbourne non-bank lender La Trobe Financial from Blackstone.
It’s only desperate or hugely compelling deals in equity capital markets this month, but fingers are pointing to Energy Resources of Australia as a contender.