Allens acts on offer of Convertible Preference Shares 2 by Bendigo and Adelaide Bank

Allens has advised Bendigo and Adelaide Bank on its A$250 million offer of Convertible Preference Shares 2 (CPS2) which will qualify as additional Tier 1 Capital. The offer is being undertaken in connection with the redemption of the Bank's step-up preference shares.

The offer involves an Institutional Offer, a Broker Firm Offer, a Reinvestment Offer for step-up preference shareholders, a Securityholder Offer and a General Offer. The offer opened on 11 September 2014 and the CPS2 are expected to be issued on 10 October 2014.

The deal is expected to bolster Bendigo and Adelaide Bank's Tier 1 Capital ratio and support the Bank's ongoing balance sheet growth. This deal follows the Bank's recent acquisition of the business and assets of Rural Finance Corporation earlier this year, on which Allens also advised the Bank.

Allens acted as both legal and taxation advisers to Bendigo and Adelaide Bank. The Corporate team was led by Partners Robert Pick and Julian Donnan, the Co-Heads of the Allens Capital Markets team. The Tax team was led by Partner Martin Fry.

Mr Pick said: 'We are thrilled to continue our ongoing partnership with Bendigo and Adelaide Bank and work with their senior management team on this important capital transaction. It is a continuation of the long history between Allens and the Bank over many years, and follows the recent work we have done with the Bank on their Rural Finance Corporation acquisition and associated equity raising.'

Mr Donnan said: 'The CPS2 offer has been very well received by investors, with strong support from investors under the institutional, broker firm and reinvestment offers enabling the Bank to set the interest margin at the bottom of the indicative range.'

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