Houlihan Lokey Advises Omni Bridgeway

Houlihan Lokey is pleased to announce that Omni Bridgeway Ltd. (ASX:OBL) (Omni) has successfully closed an A$250 million syndicated facility agreement, comprising a five-year A$150 million senior term loan and an A$100 million delayed-draw term loan, with Northleaf Capital Partners and Pacific Equity Partners. Proceeds from the senior term loan were used to refinance OBL’s existing public bonds and wholesale notes, with additional funds to be used for general corporate purposes. The transaction closed on 5 May 2022 and funded on 8 July.

Omni is a global litigation financier, providing limited recourse funding to client recoveries in legal disputes. It is the largest global legal asset investment manager by headcount and the second largest by funds under management, with ~A$2.4 billion as of March. The group invests in legal assets across the dispute resolution spectrum, providing financing from inception to trial, appeal, enforcement, and recovery. Since 2015, the company has been transitioning from a legacy balance sheet investment style to an alternative asset management fund model.

Houlihan Lokey was engaged to assess refinancing options for OBL’s existing debt instruments and to raise additional funds in support of the company’s ongoing capital requirements. Through its Sydney office and U.S. Capital Markets Group, Houlihan Lokey approached a range of private credit and specialised lending funds. The process aimed to identify the key parties with prior experience in or capability to explore the litigation finance space, given its unique risk and return characteristics. A core focus was repositioning OBL’s improved credit story, with a smoothened cash flow profile following its business transition and a more diversified portfolio—both geographically and across assets. Despite a limited pool of able local investors, the process culminated in a direct lending transaction with Northleaf Capital Partners and Pacific Equity Partners.

Houlihan Lokey led negotiations through to completion ahead of the July redemption date on OBL’s existing bonds and notes. Notably, the new facility addressed the onerous minimum liquidity requirements under the company’s legacy debt package and featured AUD + USD multicurrency arrangements, providing flexibility for use of capital across the multiple jurisdictions in which Omni operates. The five-year tenor and aligned covenant framework of the facility provide strong long-term capital management flexibility to OBL’s balance sheet and support its growth trajectory. This transaction would not have been successfully executed without the Capital Markets Group’s access to private lenders in North America, coupled with the Sydney offices on the ground presence in Australia.