David’s financing experience has been developed over the past 26 years and has seen him work with many different clients on transactions, ranging from corporate finance to the development of mining projects in South Africa, Democratic Republic of Congo and Ghana.
Despite the complexities of project financing, David has maintained a style which is commercial and practical. This extends to the advice he gives and the documents he prepares.
Major projects and clients
David has significant project financing experience, both within Australia and overseas.
In 1997, David completed the Murrin Murrin transaction, where he was the Australian adviser for the United States banks and bond holders, providing project finance of US$550 million through separate fixed and floating rate note issues. This was a landmark transaction, being the first time a United States note issue had been successfully used for a greenfields Australian mining project (in this case, a lateritic nickel mine). Freehills provided the full range of project finance documentation and advice, including tax structuring, security trust and security documentation, and advice in relation to mining, native title and environmental issues.
David also acted for Preston Resources Ltd in relation to the Bulong lateritic nickel project. Initially, this involved acting on the acquisition of the project from Resolute Mining Ltd, a substantial bridging finance facility, and a subsequent United States high yield bond raising which was made to pay out the bridge facility. In the course of these transactions, David led the Freehills team, which conducted detailed due diligence on the project and advised in relation to numerous issues including mining tenement tenure, material project contracts, environmental issues, native title and employment matters. After the acquisition was complete, David continued to advise Bulong, including in relation to ongoing mining and contractual issues, and ultimately in relation to an intricate scheme of arrangement of Bulong with its creditors.
In 2000 David acted for the Australian Railroad Group on the A$585m facility for the acquisition of Westrail Freight and funding for post acquisition capital works expenditure.
Cross-border mining financing
David’s overseas work has given him the ability to blend the requirements of the law of the host country with the recognised requirements of lenders in connection with cross-border mining project financing. Recent overseas assignments include acting for the lender on the financing of:
- the feasibility study for the development of the Lumwana copper project in Zambia
- development of the Dikulushi copper mine in the Democratic Republic of Congo
- development of the Copper Rand copper project in Quebec
- development of the Kroondal platinum mine in South Africa
- exploration and feasibility study costs for the Tuluwaka gold project in Tanzania, and
- development of the Quilombo diamond project in Brazil.
Energy, oil & gas
In the field of energy, oil and gas, David’s recent work has included:
- advising a bidder on the financing of its bid for the Western Power SWIS base load power station project
- advising a bidder on the financing of its bid for the Western Power SWIS peaking power project
- acting for a sponsor on its project financing of the Yolla gas project in Victoria
- acting for a sponsor on its project financing of the Otway gas project in Victoria
- acting for a bank on the project financing of Ch3’s Moranbah Coal Seam methane gas project in Queensland
- acting for the purchaser on the financing of the acquisition of interests in the Parmelia and Goldfields gas pipelines in Western Australia, and
- acting for the lender on the financing of oil and gas operations in Nigeria.
Corporate finance
David has extensive experience working with a variety of corporate finance structures, acting for both lenders and borrowers. He has had the documentation role in the following matters:
- negative pledge financing for a listed property trust
- establishment and ongoing administration of security trusts for a listed engineering company, a listed mining contracting company, a major private hospital owner, a private nationwide fast food company, a listed technology company, a major private national property owner and developer.
