28 August, 2014

Herbert Smith Freehills is advising integrated energy company AGL on its AUD 1.505bn acquisition of the assets of Macquarie Generation , including the 2,640MW Bayswater Power Station, the 2,000MW Liddell Power Station, the 50MW Hunter Valley Gas Turbine and the Liddell Solar Farm (MacGen Assets), and associated AUD 1.2bn capital raising and AAUD 350m debt funding. The AUD 1.2bn 1 for 5 accelerated pro-rata entitlement offer proceeds will be used to fund part of the AUD 1.505bn purchase price for the of the MacGen Assets. The balance of the consideration will be funded by bank debt.

The Herbert Smith Freehills acquisition team was led by partners Robert Merrick, Philippa Stone and Natalie Bryce, with support from partners Gerard Pike and Toby Anderson. The team worked closely with AGL’s General Counsel John Fitzgerald and Corporate Lawyer Natasha Vyrnwy-Jones.

“Having previously advised AGL on the acquisition of Loy Yang in Victoria, and now on the acquisition of Macquarie Generation in New South Wales, we are delighted to have assisted AGL in becoming one of the lowest cost baseload generators in the National Electricity Market”, said Mr Merrick.

Ms Stone said “Herbert Smith Freehills is pleased to have acted for AGL on this important transaction. This is the second time that AGL have utilised the PAITREO structure for a capital raising. We have very much enjoyed working with the AGL team.”

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