Lovells and Nabarro act on high-profile recap of infra leader

Lovells has taken the lead role for Australian group Babcock & Brown Infrastructure (BBI) as it completes a A$1.8bn (£1bn) recapitalisation, signing up Brookfield Asset Management as a new cornerstone investor.

Corporate partner Steven Bryan led the team on the deal, which sees Canadian investor Brookfield acquire a 39.9% stake in BBI, as well as certain assets including the UK PD Ports Business.

The refinancing is aimed at putting BBI's finances on track after its leveraged investment model was badly hit by the prolonged turmoil in credit markets and the downturn in the global economy.

The instruction saw Lovells advise on the UK aspects of the deal, which included the disposal of the ports business, as well as the European merger control aspects of Brookfield's investment. Lovells had previously been instructed for BBI on the take-private acquisition of PD Ports in 2006.

Bryan and his team, which included corporate partner Ben Higson and competition partner Matthew Levitt, advised alongside Australian firm Freehills, which took charge of all of the local law aspects. Equity capital markets co-head Philippa Stone and corporate partner Tim McEwen led the team for Freehills.

Nabarro's corporate team won a first-time instruction for Brookfield, acting as UK counsel on the PD Ports acquisition with corporate partner Andrew Wigfall at the helm. Mallesons Stephen Jacques advised Brookfield on Australian law.

Bryan commented: "The leveraged listed infrastructure model has been challenged of late by market conditions. The recapitalisation will reduce BBI's debt and simplify its capital structure and allow it to focus on its underlying business.

PD Ports owns and operates several UK port assets, including Teesport, the UK's third largest by volume.

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