Walkers Acts on Innovative Bond Financing of Mega Hong Kong Real Estate Purchase

Walkers advised Morgan Stanley as the mandated lead arranger of US$4.1 billion asset-backed senior bonds on a financing to a consortium of buyers in relation to the highly publicised acquisition of The Center, one of Hong Kong's most prestigious commercial buildings.

The asset-backed bonds were comprised of approximately US$3.3 billion Tranche A notes and US$800 million Tranche B notes, with an 18 month maturity with a 12 month soft non call and a deferrable coupon.

Onshore counsel, Allen & Overy, worked closely with Morgan Stanley to develop a highly structured and novel financing solution in order to facilitate the consortium's objective of quickly paying down the bonds using the proceeds of the re-sale of floors from the tower following the acquisition.

The Walkers team was led by partners James Webb and Paul Aherne who were assisted by associate Daniel Moore.

A separate team led by Kristen Kwok acted as offshore counsel to Hammer Capital, the purchaser of the US$800 million Tranche B notes, with onshore counsel Linklaters.