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JP Morgan leads financing for Cochlear
Gilbert + Tobin has advised JP Morgan as the sole lead manager and underwriter of Cochlear’s $880 million placement and $50 million share purchase plan.
Tony Zhang
Firms: Gilbert + Tobin (JP Morgan); Herbert Smith Freehills (Cochlear)
Cochlear is a successful ASX 50 company which designs, manufactures and supplies innovative hearing implant devices.
Value: $880 million.
Area: Banking and finance.
Key players: The G+T team was led by partners Peter Cook and Adam D’Andreti on the Cochlear transaction.
The team was assisted by corporate advisory lawyers Michael Tong and Cassie Bell.
Deal significance: The underwriter, JP Morgan, notified fund managers late on Wednesday, 25 March, that the offer had been increased from $800 million to $880 million due to significant demand from both overseas and domestic accounts.
Cochlear is looking to stockpile its balance sheet so that the company remains strongly capitalised during the current market uncertainties.
According to the company, the COVID-19 pandemic will have a negative impact on Cochlear’s operations with many surgeries delayed.
“This capital raising effort is another action to support these priorities, as well as considering current expenses, including a long-term patent dispute,” CEO and president of Cochlear, Dig Howitt said.
“While this is an immediate activity, this focuses on the longer term outlook of the company.”
G+T Australia’s ECM team was able to utilise their considerable experience to assist the underwriters in novel considerations and issues in the face of the current economic uncertainty and share market volatility.
Herbert Smith Freehills had advised Cochlear on the capital raise.
