Deal profile | Kathmandu undertakes major trans-Tasman capital raise

New Zealand law firm Chapman Tripp and Australian law firm Gadens have advised Kathmandu Holdings Limited (Kathmandu), a dual listed entity on NZX and ASX, on its underwritten placement of 18.5 million fully paid ordinary shares to institutional and sophisticated investors to raise NZ$40 million (Placement).

The Placement will be followed by a non-underwritten share purchase plan (SPP) to raise up to approximately NZ$8 million, with the ability for Kathmandu to accept up to a further NZ$2 million in oversubscriptions.

The issue price for shares under the Placement and SPP is NZ$2.16, representing a 10.0% discount to the last closing price on the NZX of NZ$2.40 on 19 March 2018.  The capital raise will be applied towards Kathmandu’s acquisition of American outdoor footwear company Obōz Footwear LLC.

Goldman Sachs Australia Pty Ltd acted as lead manager and underwriter of the Placement.

Firms involved: Chapman Tripp and Gadens (Acted for Kathmandu), Bell Gully and Herbert Smith Freehills (Acted for Goldman Sachs Australia Pty Ltd).

Deal value: NZ$40 million
Deal area: Corporate
Practice groups involved: Corporate

Key players: Chapman Tripp partners Roger Wallis and Fiona Bennett, and senior associate Nick Letham advised Kathmandu on the Placement and SPP from a New Zealand law perspective, while Gadens partners Jeremy Smith and Michael Kenny, and senior associate Winnie Sinn advised on the Australian aspects of the capital raise.