Archive | Debt securities

Christchurch council launches bond offer

Christchurch City Council company Christchurch City Holdings Ltd lodged the product disclosure statement on Thursday for a $150 million bond offer on Thursday – $100 million plus $50 million of oversubscriptions.

The council company’s chief financial officer, Leah Scales, said on Thursday S&P Global Ratings was expected to assign an A+ rating to the 5-year unsecured unsubordinated fixed-rate bonds.

The offer is expected to open on Monday 27 November, closing on 29 November. All the bonds are reserved for clients of the joint lead managers & other approved financial intermediaries. There’s no public pool.

Attribution: Company release.

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Precinct bond issue fully subscribed

The margin for Precinct Properties NZ Ltd’s new $100 million of bonds has been set at 1.50%/year over the 7-year swap rate, and the interest rate has been set at 4.42%/year.

Precinct offered $75 million of secured unsubordinated fixed-rate bonds plus $25 million in oversubscriptions, which were all taken up.

All the bonds have been allocated to intermediaries for distribution to their clients. No public pool is available. The bonds will be issued on 27 November.

Earlier story:
13 November 2017: Precinct launches bond issue

Attribution: Company release.

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Precinct launches bond issue

Precinct Properties NZ Ltd launched its $100 million bond issue today – up to $75 million of secured unsubordinated fixed-rate 7-year bonds, with the ability to accept $25 million more – to institutional & New Zealand retail investors. There’s no public pool.

The indicative margin range above the 7-year swap rate is 1.5-1.6%/year, subject to a minimum interest rate of 4.4%/year. The margin & interest rate will be set on Friday 17 November following a bookbuild process.

Link: Indicative terms sheet

Earlier story:
10 November 2017: Precinct expects to open bond offer next week

Attribution: Company release.

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Updated: PFI $100 million bond issue fully subscribed

Published 2 November 2017, updated 12 November 2017:
Property for Industry Ltd confirmed its $100 million 7-year bond issue on 2 November. On 10 November, the interest rate was set at 4.59%/year, reflecting a margin of 1.65%/year above the 7-year swap rate.

PFI offered $75 million of senior secured fixed rate bonds to institutional & New Zealand retail investors and $25 million in oversubscriptions, and it was fully subscribed. There was no public pool. The company will use the proceeds to repay existing bank debt.

PFI expects the offer to open next Monday, 13 November, and to close on Friday 24 November. The indicative margin range above the 7-year swap rate for the bonds was 1.65-1.8%/year, subject to a minimum interest rate of 4.55%/year. The margin & interest rate were set following a bookbuild process on Friday 10 November.

Link: PFI bond offer product disclosure statement, terms sheet & presentation

Earlier stories:
1 November 2017: PFI settles portfolio purchase
6 October 2017: PFI uses new credit facility & rights issue to buy low-site-coverage freight portfolio

Attribution: Company release.

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Precinct expects to open bond offer next week

Precinct Properties NZ Ltd expects to release full details next week of an offer of secured unsubordinated fixed-rate 7-year bonds to institutional & New Zealand retail investors.

The NZX-listed company has appointed ANZ Bank NZ Ltd as arranger and ANZ, together with First NZ Capital Securities Ltd & Forsyth Barr Ltd, as joint lead managers. Precinct has also appointed Hobson Wealth Partners Ltd as the co-manager.
Attribution: Company release.

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PFI considers $100 million bond issue

NZX-listed industrial property landlord Property for Industry Ltd said on Friday it was considering issuing up to $100 million of bonds to institutional & New Zealand retail investors.

The offer would be up to $75 million of senior secured fixed rate bonds, expected to have a term to maturity of 7 years, with the ability to accept up to $25 million in oversubscriptions. The company would use the proceeds to repay existing bank debt.

It expects to release full details this week.

Attribution: Company release.

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Auckland Airport sets rate on bonds

Auckland International Airport Ltd’s $100 million 6-year retail bond issue closed fully subscribed on Wednesday and the interest rate has been set at 3.64%/year. Initially the company said the rate was 3.62%/year.

The indicative margin range was 0.82-0.87% over the underlying swap rate, and the rate set is at the bottom of that range.

Auckland Airport offered $75 million of bonds, with the ability to accept $25 million of oversubscriptions. There was no public pool for the offer.

The bonds will be issued next Tuesday, 17 October.

Attribution: Company release.

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Precinct sets notes interest rate

Precinct Properties NZ Ltd allocated $125 million of 4-year convertible notes today at 4.8%/year, the minimum interest rate under the offer. It has another $25 million of notes available under its priority offer.

Today’s allocation included the maximum $25 million of oversubscriptions.

Minimum application amounts are $5000 under the general offer, which closes on Friday 22 September, and $1000 under the priority offer, to eligible NZ-resident Precinct retail shareholders, closing on Tuesday 19 September.

Today’s bookbuild setting the interest rate was for participants in the general offer.

Link: Precinct notes product disclosure statement

Earlier story:
27 August 2017: Precinct launches 4-year convertible notes

Attribution: Company release.

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Heartland notes offer heavily oversubscribed

Heartland Bank Ltd has closed its 5-year notes offer heavily oversubscribed and it’s accepted the maximum $50 million of oversubscriptions on top of the $100 million sought from institutional & New Zealand retail investors. There’s no public pool.

The company closed the bookbuild for the 5-year unsecured, unsubordinated, medium-term, fixed-rate notes today and set the interest rate at 4.5%/year, a 1.88%/year margin over the underlying 5-year swap rate.

The notes will be issued on 21 September and will mature on 21 September 2022. Heartland said they were expected to have a credit rating of BBB from Fitch Ratings.

Attribution: Company release.

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Precinct launches 4-year convertible notes

Precinct Properties NZ Ltd expects to open its $150 million 4-year subordinated convertible notes offer on Tuesday 5 September. The company lodged its product disclosure statement on Friday.

The notes will be convertible into ordinary shares at the lesser of $1.40/share or a 2% discount to the market price. Conversion date is 27 September 2021.

Precinct said on Friday it would make a priority offer of up to $25 million of notes to eligible New Zealand-resident retail Precinct shareholders, closing on Tuesday 19 September, and a $100 million general offer, with the ability to accept $25 million of oversubscriptions, to NZ-resident investors & certain overseas institutional investors, closing on Friday 22 September. There is no public pool.

Any notes not taken up under the priority offer can be reallocated to the general offer.

Precinct will retain the right to pay a cash amount to noteholders at the end of the term rather than converting the notes into shares. In this case, noteholders would be paid an amount equal to the market price of all the shares that would have otherwise been issued on conversion, so they receive an equivalent value to those shares and will similarly benefit from any appreciation of the share price above $1.40.

The indicative margin range above the 4-year swap rate for the notes is 2.25-2.45%/year, subject to a minimum interest rate of 4.8%/year. The margin & interest rate will be set on Monday 4 September following a bookbuild process and will be announced shortly after.

Under certain circumstances, interest payments can be suspended and the notes can be converted early.

Link: Precinct notes product disclosure statement

Attribution: Company release.

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