In collaboration with Clifford Chance, we have advised the University of Manchester on the launch of a £300 million 4.25% public bond issue due 2053, the first public capital markets fundraising undertaken by the Russell Group university.
The successful bond issue is the second such project that we have collaborated on with Clifford Chance following the launch of a £350 million public bond issue by the University of Cambridge in October 2012, the first capital markets fundraising undertaken by the university in its 800-year history. Our two firms worked alongside the University’s General Counsel Chris Petty and in-house solicitor Iram Kiani.
The net proceeds from the latest public bond issue will be used by the University of Manchester for general corporate purposes including the continuation of its £1 billion estates master plan.
Sarah Seed
, our banking partner who specialises in alternative sources of financing for not-for-profit institutions, said: “The reality is that the higher education sector in the UK, and across the world, is experiencing significant change. This requires new solutions, especially in the area of finance, and we are now combining a greater number of legal disciplines to meet our clients' needs.
“Many universities are increasingly looking at alternative forms of financing and we were once again delighted to have been able to assist a university on successfully raising a substantial amount of capital to help them achieve their long term goals and look to the future with confidence.”
We are developing a market-leading reputation in the area of alternative financing for the not-for-profit sector and are currently advising a number of higher education institutions and charities on the rapidly increasing range of financial solutions open to them.
On the University of Manchester deal, we worked together with Clifford Chance’s leading debt capital markets team to adapt a traditional corporate bond offering to work effectively for the university.
David Bickerton, Clifford Chance London and Middle East regional managing partner, added: “We were delighted to be able to work with Mills & Reeve again to bring our capital markets expertise to bear in helping the education sector, one of Britain's key exporters, to invest and grow for the future.”
Our team was led by banking partner Sarah Seed with additional support from corporate partner Stephen Hamilton
and banking associate Matthew Howling
. At Mills & Reeve, we act for over 120 universities, colleges and education bodies.
Clifford Chance London and Middle East regional managing partner David Bickerton led for the university.
Rothschild is providing independent debt advice to the University and the Joint Lead Managers to the bond issue are RBS, Barclays and HSBC. Mills & Reeve and Clifford Chance worked together in advising the University. Linklaters acted as legal adviser to the Joint Lead Managers.
http://www.mills-reeve.com/university-of-manchester-public-bond-04-07-2…
