Macquarie Bank Limited Completes $750 Million Offering of Perpetual Subordinated Notes

March 8, 2017

S&C client Macquarie Bank Limited completed an offering of $750 million aggregate principal amount of its 6.125% perpetual subordinated notes, which are subject to (i) exchange into ordinary shares of Macquarie Group Limited, Macquarie Bank's parent, upon the occurrence of certain “non-viability trigger events,” acquisition events or if its Common Equity Tier 1 capital ratio drops below a certain threshold; and (ii) partial or total write-down, in each case as determined by the Australian Prudential Regulatory Authority (APRA), Macquarie Bank's principal regulator in Australia. APRA has provided that the notes will count towards the required amount of Tier 1 capital that Macquarie Bank must hold as an authorized deposit-taking institution in Australia.

Macquarie Bank is based in Sydney, Australia, and is a provider of asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities spaces. It acts on behalf of institutional, corporate and retail clients and counterparties around the world. The S&C team was led by Waldo Jones, along with Connor Schillerstrom and Stephanie Glass. Eric Wang advised on U.S. taxation matters, and Andrew Thomson and Emma Hardwick advised on U.K. taxation matters. Donald Toumey advised on certain U.S. bank regulatory issues, and David Gilberg advised on certain Dodd-Frank issues.