Adviser to RCF on A$240m funding package for Pilbara Minerals to acquire Altura Mining
Role / Corporate Adviser
Date / October 2020
Harvis Advisers and Sternship Advisers acted as joint corporate advisors to Resource Capital Funds (RCF) on its co-investment with AustralianSuper into Pilbara Minerals Limited (ASX: PLS) as part of the prepack DOCA of distressed Altura Mining Limited.
In this highly complex transaction, Harvis and Sternship advised RCF, a global leader in mining-focused private equity, on co-investing with AustralianSuper, Australia’s largest superannuation fund. The deal involved an A$230 million underwritten equity investment and the acquisition and restructuring of Altura Mining’s lithium assets through a prepackaged Deed of Company Arrangement (DOCA) following Altura’s financial distress.
Harvis played a crucial role in coordinating negotiations with all key stakeholders and overseeing the appointment of essential advisors, including specialists in the prepack DOCA and ASX-listed capital markets, ensuring seamless execution. Harvis also navigated the delicate interests of Altura's bondholders by structuring a unique exit mechanism offering a combination of cash and equity in Pilbara Minerals, which led to a significant upside as Pilbara’s performance surged post-transaction.
This strong alignment of commercial interests fostered consensus among key stakeholders, securing transaction exclusivity and market-standard deal protections for RCF. Harvis’ deep understanding of lithium pricing dynamics and insight into the consolidation of the Pilgangoora mine and plants proved critical in eliminating the sector's weakest supply link, further strengthening Pilbara Minerals.
The co-investment at 38 cents per Pilbara share generated exceptional returns, peaking at almost 15x within two years. Harvis’ expertise in distressed asset restructuring, capital markets, and stakeholder management was pivotal in achieving this outcome. RCF enjoyed an incredibly successful exit within the first week post-closing, while AustralianSuper remains a substantial shareholder in Pilbara Minerals, supporting its market-leading position in the lithium sector.