Precinct Properties New Zealand Limited (Precinct) has announced an offer of up to $150 million of subordinated convertible notes (Notes), paying at least 4.8% p.a for four years
The convertible element is a little bit interesting in that it provides potential upside due to the way it is structured.
The Conversion Price is the lesser of:
the Conversion Price Cap of $1.40; and
a 2% discount to the Market Price (referred to below as the discounted approach).
Effectively if the share price is above 1.40 in four years Note holders will benefit.
Issuer:
Precinct Properties New Zealand Limited
Instrument:
Fixed rate, unsecured, subordinated convertible notes
Maturity Date:
27 September 2021 (4-year convertible note)
Issue Rating:
The Notes will not be rated.
Size:
Up to NZ$150 million, with the ability to accept up to a further NZ$50 million in oversubscriptions
Interest Rate:
Minimum 4.80%
The indicative margin range above the 4-year swap rate for the Notes is 2.25% to 2.45% per
The oversubscription of the Heartland Bank offer has confirmed there is a lot of money looking for a home..........
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