King & Wood Mallesons (KWM) has advised Police & Nurses Limited (PNL) on their inaugural issuance of Capital Notes. The Capital Notes offering were issued to wholesale investors and are intended to support PNL’s growth through capital management and execution of its transformation roadmap.
The Capital Notes are perpetual securities which are eligible to satisfy PNL’s regulatory capital requirements as Additional Tier 1 Capital. The Capital Notes may be redeemed after five years but if they are not redeemed, they’ll remain on issue indefinitely. If PNL were to become non-viable, the Capital Notes would be converted into mutual capital instruments (MCIs). This is the first transaction of its kind to feature this type of conversion.
The KWM team was led by Partners Jo Dodd and David Wood with support from Senior Associates Chloe Delahunt-Devlin and Frankie Barbour.
Reflecting on the transaction, Jo Dodd commented: “PNL’s issuance of Capital Notes which convert to MCIs is a first for the market and PNL’s first capital instrument – it was an absolute pleasure to work with the PNL team, NAB and Ord Minnett on this innovative deal”.
