Ashurst has advised Drillsearch Energy Limited (Drillsearch) on its US$125m offer of senior, unsecured, guaranteed convertible bonds.

Drillsearch Energy is an oil and gas explorer and producer, focused on the highly-prospective Cooper-Eromanga Basin, which is located in Central Australia and spans the north-eastern region of South Australia and the south-western region of Queensland.

Lead partner on the matter, Bill Koeck, said: "The Drillsearch convertible bond issue provides an example of the versatility and strength of capital markets in Asia for Australian companies. Australian listed companies are using this source of funding to broaden and diversify their funding base."

The convertible bonds were issued by Drillsearch's wholly-owned subsidiary Drillsearch (Finance) Pty Limited, are guaranteed by Drillsearch and will be due in September 2018.

The proceeds of the issue will be used to repay the A$100 million debt facility provided by the Commonwealth Bank of Australia to fund Drillsearch's acquisition of Acer Energy Limited last year and for general corporate purposes.

The Ashurst team included, partner Bill Koeck, senior associate Anton Harris and lawyers James Parkin and Matthew Moses from Corporate.  Partner Steve Smith, senior associate Tim Macmillan and lawyer Alysha Salinger provided banking advice on the matter.

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