ABN Amro grabs cash
Iluka Resources hands out $8 million in fees for lead managers and underwriters in its latest equity raising.
ABN Amro and Citi will share about $8 million in fees for acting as co-lead managers and underwriters to the $353 million equity raising currently being conducted for mineral sands producer Iluka Resources.
The four-for-seven rights issue, pitched at $2.55 a share – a 30 per cent discount to its last trading price and a 42 per cent discount to the trading price before the issue was foreshadowed in late February – is being used to fund development of operations in Victoria and South Australia.
The ABN Amro team, led by Rico Overhaart, and the Citi team, led by Mike Neal, are working on a management fee of 2.25 per cent, with an "incentive” fee of 0.5 per cent, worth a further $1.76 million, that can be paid at the discretion of Iluka.
ABN Amro has managed to land roles with most of the major equity raisings to date in 2008, including the $1.23 billion rights issue for Primary Healthcare (with Credit Suisse and Deutsche), and the $200 million issue for Nufarm (with JP Morgan).
Others to clip the ticket on the Iluka issue include Gresham Advisory Partners, which will collect $750,000 from its work as corporate advisor, legal firm Freehills ($435,000) and accounting firm PricewaterhouseCoopers ($250,000).
Iluka has also arranged $500 million in new debt facilities, including a syndicated term loan facility of $445 million lead arrangement by ABN Amro Bank and Westpac, and a $55 million working capital facility.
The four-for-seven rights issue, pitched at $2.55 a share – a 30 per cent discount to its last trading price and a 42 per cent discount to the trading price before the issue was foreshadowed in late February – is being used to fund development of operations in Victoria and South Australia.
The ABN Amro team, led by Rico Overhaart, and the Citi team, led by Mike Neal, are working on a management fee of 2.25 per cent, with an "incentive” fee of 0.5 per cent, worth a further $1.76 million, that can be paid at the discretion of Iluka.
ABN Amro has managed to land roles with most of the major equity raisings to date in 2008, including the $1.23 billion rights issue for Primary Healthcare (with Credit Suisse and Deutsche), and the $200 million issue for Nufarm (with JP Morgan).
Others to clip the ticket on the Iluka issue include Gresham Advisory Partners, which will collect $750,000 from its work as corporate advisor, legal firm Freehills ($435,000) and accounting firm PricewaterhouseCoopers ($250,000).
Iluka has also arranged $500 million in new debt facilities, including a syndicated term loan facility of $445 million lead arrangement by ABN Amro Bank and Westpac, and a $55 million working capital facility.
Share this article and show your support
Call 1300 880 160
Start a chat
Schedule a call
