ASK Transitions to Negative Pledge Program, Marking Milestone in Australian Debt Markets

ASK has achieved a major milestone by shifting from a secured syndicated facility to a negative pledge common program. This transition highlights ASK’s strong performance and improved standing in the Australian debt markets. The Commonwealth Bank of Australia and Sumitomo Mitsui Banking Corporation arranged the transaction.

Pinsent Masons handled the benchmarking of terms and the documentation for this deal. Their work guided the transaction to a successful financial close on Friday, 15 November. The team included finance partner Jim Hunwick, senior associate Jesse McNaughton, and associates Migo Sanchez and Richard Beauchamp.

Interview with Jim Hunwick of Pinsent Masons on ASK’s Transition to a Negative Pledge Common Program

Interviewer: Thank you for taking the time to speak with us today, Jim. ASK has recently made a significant transition from a secured syndicated facility to a negative pledge common program. What does this move signify for ASK and the broader Australian debt market?

Jim Hunwick: Thank you for having me. This shift is a remarkable milestone for ASK, illustrating not only their strong performance but also an enhanced position within the Australian debt markets. By transitioning to a negative pledge common program, ASK is signaling its robust credit profile and appealing to a wider range of investors, which can ultimately facilitate easier access to capital in the future.

Interviewer: Can you elaborate on the role Pinsent Masons played in this transaction?

Jim Hunwick: Absolutely. Our team was responsible for benchmarking the terms and handling the documentation for this deal. It was a comprehensive effort that required our expertise to ensure that the transaction was structured favorably and aligned with market expectations. This collaborative approach was crucial in achieving a successful financial close on November 15.

Interviewer: You mentioned that the Pinsent Masons debt financing team has had a notably successful year. Could you share some insights into the other significant transactions you’ve been involved in?

Jim Hunwick: Certainly. Alongside ASK, we represented the Australian Gas Infrastructure Group in its EUR2 billion Euro Medium Term Note program, which is a substantial endeavor that was listed on the Singapore Stock Exchange and arranged by Goldman Sachs. Additionally, we assisted Flinders Ports in launching its sustainability-linked debt program and establishing a new Australian Medium Term Note program, led by the Royal Bank of Canada. These projects highlight our commitment to supporting Australian issuers as they navigate the complexities of the debt capital markets.

Interviewer: It sounds like an exciting time for your team. What’s next on the horizon for Pinsent Masons regarding debt financing?

Jim Hunwick: We’re looking forward to continuing our support for Australian issuers as they seek to advance their positions in the debt capital markets. The landscape is evolving, and we aim to provide the necessary guidance and expertise to help our clients thrive in this environment. We are particularly keen on sustainability-linked transactions, which are gaining momentum, as they align with broader global trends towards responsible investing.

Interviewer: Thank you for your insights, Jim. It’s clear that both ASK and Pinsent Masons are on a promising trajectory in the debt market.

Jim Hunwick: Thank you. We appreciate the opportunity to discuss our work and the progress within the industry.

Jim Hunwick commented that the Pinsent Masons debt financing team has had a notable year. They represented issuers in significant billion-dollar transactions. In addition to ASK, they worked with the Australian Gas Infrastructure Group on its EUR2 billion Euro Medium Term Note program, listed on the Singapore stock exchange and arranged by Goldman Sachs. They also assisted Flinders Ports in establishing its sustainability-linked debt program and new Australian Medium Term Note program, led by Royal Bank of Canada. The team looks forward to supporting Australian issuers in advancing their positions in the debt capital markets.