11:54, July 07 339 0

2017-07-07 11:54:06
Reed Smith wins first major refinancing deal through ex-KWM team

Reed Smith has advised Jefferies International in the firm’s first major refinancing deal thanks to the hire of an ex-King & Wood Mallesons (KWM) team.

The £180m social housing REIT for Jefferies will go live on 12 July and sees the company act as sole bookrunner for Norton Rose Fulbright-advised Residential Secure Income (ReSI).

Reed Smith’s team was led by US securities and global capital markets partner Daniel Winterfeldt and, notably, corporate and global capitals markets partner Delphine Currie with support from regulatory partner Tim Dolan and tax partner Gareth Amdor.

Dolan, Amdor and Currie all joined as part of the 50-strong team which was distributed across four jurisdictions from KWM in January 2017. The firm hoped that these hires would allow it to compete in the “increasingly popular and compex area of REITs and REIT financing”.

At the time, questions were raised as to whether the move would be “coherent”.

Currie, in particular, was said to be instrumental in the deal which represents her first major REIT with Reed Smith since joining. While Currie was not thought to have contributed to the client relationship directly, her experience in this market helped considerably.

Currie said: “We are pleased to have assisted Jefferies and their client Residential Secure Income on a successful IPO. The international reach of Reed Smith was enormously helpful as the offer was made into a number of jurisdictions.

“Having US securities advice here in London was very important to the client and assisted greatly in meeting the timetable.”

The Asia-based firm caused one of the biggest stories of the last year as it was announced that the  firm was unable to raise the £14m its EUME arm needed. A rumoured merger never materialised and the firm’s troubles grew from there.

It then announced that it would be filing a notice of intention in December 2016 before following through with that one month later.

2016 saw 90 partners leave KWM as a number of teams departed to firms including DLA Piper, Greenberg Traurig and MacFarlanes to name just a few with departures continuing throughout this year.

KWM’s troubles persisted to the extent that the firm’s European arm was unable to pay staff salaries past January.

In April, The Lawyer reported that, due its financial troubles, a total of 70 barristers from 32 chambers and 66 law firms around the world stood to lose millions of pounds.

As a result, Reed Smith was one of a number of firms that benefited from KWM, including boosting associates’ pay to match that of the three it rescued from the collapsed firm.