Macquarie announces details of committed bank facility

Following recent announcements on the proposed establishment of Macquarie Group Limited (MGL), the non-operating holding company (NOHC), Macquarie Bank Limited today announced further details of the $A8 billion committed bank facility.

The facility will have maturities ranging from one to five years and consist of revolving and term facilities.

The major international and Australian banks that have been appointed to the facility as Mandated Lead Arrangers and Underwriters comprise:

• ABN AMRO
• ANZ
• Barclays Capital
• Dresdner Kleinwort
• HSBC
• NAB
• RBS
• Westpac
• CBA
• JPMorgan
• Merrill Lynch

Syndication roadshows are expected to commence in late September/early October.

As previously announced, the funds will be applied by MGL toward the acquisition of investment banking businesses and some other non-banking activities from Macquarie Bank Limited as part of the proposed restructure of the group. Drawdown is expected to occur later this year once the restructure is effective.

The establishment of MGL is intended to support continued growth across the Group’s businesses, particularly internationally, whilst meeting the requirements of the Australian Prudential Regulation Authority (APRA).

The Restructure is proposed to be effected by schemes of arrangement to be considered by shareholders and optionholders of Macquarie Bank Limited at meetings on 25 October 2007.

An Explanatory Memorandum detailing the proposed Restructure is due to be sent to Macquarie Bank shareholders and optionholders late in September 2007.

Following the restructure, there will be two primary external funding vehicles, being Macquarie Group Limited and Macquarie Bank Limited.

As previously advised, provisional ratings have been received for the NOHC from Fitch (A), Moody’s (A2) and Standard & Poor’s (A-). The provisional ratings for Macquarie Bank Limited following the Restructure are expected to remain unchanged for Fitch (A+) and Standard & Poor’s (A). Moody’s has advised that Macquarie Bank Limited is expected to be rated A1 with a positive ratings outlook following the Restructure. Definitive ratings will be applied upon establishment of the restructured Macquarie Group.

There will be no increase in the net debt of the Macquarie Group as a result of the Restructure.

All existing borrowings in the name of Macquarie Bank Limited will be unaffected by the proposed restructure and will continue to remain outstanding in the name of Macquarie Bank Limited.