Allen & Overy (A&O) is advising new client McCarthy & Stone on its intention to float on the London Stock Exchange (LSE), while the retirement housebuilder’s former advisers Freshfields Bruckhaus Deringer acted for the underwriters.
Freshfields were listed as the company’s main advisers in 2013/14, with the firm acting on McCarthy & Stone’s rights issue and refinancing of its existing liabilities totalling £518.9m.
However, the company has now turned to A&O for advice on its intention to float, with a team led by corporate partner Richard Browne. Equity capital markets (ECM) partner James Roe is also offering support, along with US securities partner Adam Wells and counsel Michael Bloch.
Freshfields meanwhile won a role advising the underwriters Deutsche Bank and Goldman Sachs, who looked to partner Mark Austin for legal counsel.
It will be the sixth flotation that A&O has worked on in the past month, after winning issuer roles on the listing of Ibstock and Worldpay, as well as acting for the underwriters on Equiniti, Hastings and Funding Circle’s intended flotations.
A&O partners Richard Browne and James Roe said the firm had strategically focused on its ECM practice over the past few years.
“Over the last two to three years we’ve made a significant investment in our ECM practice, particularly in the people,” Roe told The Lawyer. “The number of transactions we’re currently involved in is a testament to that.”
Part of the longer-term investment has been the hiring of US corporate finance partners Adam Wells and Jeff Hendrickson from Herbert Smith Freehills. Partner James Roe meanwhile returned to the City from Moscow, with partner David Broadley also focusing his practice more on IPOs in the last few years.
Roe said the effects of the investment would have been more noticeable last year “if not for the market conditions”, adding the firm’s investment in ECM over the past few years “is now coming together”.
Retirement housebuilder McCarthy & Stone is attempting to raise £70m from the listing, with admission due to take place in November.
Background to the deal
A&O bagged a new client in McCarthy & Stone after winning a pitch for the work. It was invited to pitch by the company’s acting general counsel Patrick Hole, who has also held interim roles at DTZ and Keepmoat. He replaced McCarthy & Stone’s GC John Davies in July 2014, who has since joined Saga as a consultant.
The magic circle firm has had a busy month advising on IPOs, acting for the underwriters on Equiniti and Hastings’ listings to float, as well as Worldpay and new client Ibstock on its planned admission to the LSE.
This time last year, The Lawyer revealed Linklaters advised on 10 IPOs on London’s main market during the first eight months of 2014, with Freshfields close behind on eight. They were followed by Ashurst, which worked on seven listings.
