Archive | Debt securities

Summerset sees bonds as helpful diversification

Summerset Group Holdings Ltd set an interest rate last week of 4.78%/year for its $100 million issue of secured, unsubordinated fixed-rate bonds. The issue includes $25 million of oversubscriptions. There’s no public pool.

The offer closes on Thursday 6 July and allotment will be on Tuesday 11 July. The 6-year bonds have a maturity date of 11 July 2023.

Summerset chair Rob Campbell said the transaction was a significant milestone for Summerset, being its first domestic regulated bond issue and the first for the New Zealand retirement village & aged care sector: “The proceeds will be used to reduce existing bank debt to $211 million, leaving significant headroom within the $600 million facility.

“This provides further diversification of funding sources and tenor for the group and provides strong levels of certainty for future years for funding. The bonds complement existing syndicated loan facilities which were refinanced in March.”

Attribution: Company release.

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Summerset announces $100 million bond offer

Summerset Group Holdings Ltd lodged its product disclosure statement today for an offer of $100 million of 6-year bonds.

The retirement village developer & operator is offering up to $75 million of unsubordinated fixed-rate bonds, with the ability to accept up to $25 million in oversubscriptions, to New Zealand institutional & retail investors. There’s no public pool. Summerset will provide a guarantee & security package with the bonds.

It expects the offer to open on Thursday 15 June and close on Thursday 6 July.

Summerset has appointed ANZ Bank NZ Ltd as arranger, and ANZ, Deutsche Craigs Ltd, First NZ Capital Securities Ltd & Forsyth Barr Ltd as joint lead managers.

Link: Summerset bond product disclosure statement

Attribution: Company release.

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Whole $100 million of Goodman bonds taken up

Subscribers have taken up the whole $100 million of Goodman+Bonds in the Goodman Property Trust’s issue of 7-year fixed-rate senior secured bonds, which closed on Friday.

Goodman offered $75 million of bonds, with the ability to accept up to $25 million in oversubscriptions.

The interest rate was set at 4.54%/year, reflecting a margin of 1.55%/year over the underlying 7-year swap rate.

Trading in the bonds will open on the NZX Debt Market on Thursday 1 June. They’re expected to have an investment grade issue credit rating of BBB+ from Standard & Poor’s. The Goodman trust’s current corporate credit rating is BBB.

Earlier story:
21 May 2017: Goodman opens 75+25 bond issue

Attribution: Trust release.

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Goodman opens 75+25 bond issue

Goodman Property Trust opened a $75 million bond issue on Thursday, with the ability to accept up to $25 million in oversubscriptions.

The 7-year fixed-rate senior secured Goodman+Bonds will have a maturity date of 31 May 2024 and are expected to have an investment grade issue credit rating of BBB+ from Standard & Poor’s. The Goodman trust’s current corporate credit rating is BBB.

The indicative issue margin range is 1.55-1.70%/year. The issue margin & interest rate will be set following a bookbuild process on Friday 26 May. The bonds are expected to be issued on 31 May.

Attribution: Trust release.

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Genesis sets rate for long-term bonds

Genesis Energy Ltd has allocated $225 million of 30-year subordinated unsecured capital bonds in a bookbuild process. There was no public pool.

The interest rate from the issue date to the first reset date (9 June 2022) will be 5.70%/year, which was the minimum rate set out in the terms sheet. The margin has been set at 2.75%.

The offer will close on 7 June. The bonds will be issued on 9 June and will mature on 9 June 2047.

Attribution: Company release.

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Goodman plans new retail bond issue

Goodman Property Trust is considering another issue of Goodman+bonds to institutional & New Zealand retail investors.

Goodman has made 3 Goodman+Bond issues, the first maturing in 2015. The others mature in December 2020 & June 2022. Goodman has also has $45 million of bonds issued to the wholesale market.

Trust manager Goodman (NZ) Ltd’s chief executive, John Dakin, said yesterday trust subsidiary GMT Bond Issuer Ltd was considering an offer of 7-year, fixed rate, senior secured retail bonds which would be direct, secured, senior debt obligations guaranteed by the NZX-listed Goodman trust.
Mr Dakin said full details of the offer would be released later in May, when the offer is expected to open.

Goodman has appointed the Bank of NZ and Westpac Banking Corp (through its New Zealand branch) as joint lead managers and Deutsche Craigs Ltd, First NZ Capital Securities Ltd & Forsyth Barr Ltd as co-managers for the proposed offer.

Attribution: Company release.

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Local government agency considers 16-year bonds

The NZ Local Government Funding Agency Ltd, set up in 2011 to sell bonds on behalf of member councils, is looking at issuing a 16-year bond in April.

Chief executive Mark Butcher said a bond maturing in 2033 would allow the agency to provide long-dated funding to councils with a better match to their long-dated assets.

It would extend the agency’s debt profile 6 years beyond its longest-dated bond at the moment, which matures in April 2027.

The agency’s bonds trade on the NZX debt market and are rated AA+ (domestic long term) by international credit rating agencies Standard & Poor’s and Fitch Ratings, the same as the Government’s rating.

The agency has issued $6.8 billion of bonds on behalf of its council members, with 7 maturities from 2017-27. However, chair Craig Stobo said in the half-year report issued in February the agency had issued only $595 million of long-dated bonds over the 6 months to December, adding: “While this is in line with statement of intent forecast, it is one of the lowest issuance amounts over a 6-month period, reflecting reduced borrowing demand from our council members.”

The agency has a bond tender scheduled for Wednesday 5 April and will release tender details 2 days earlier. If it decides to proceed with the 2033 bond, it will release details of that on Tuesday 4 April.

Link:
NZ Local Government Funding Agency

Attribution: Company release.

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Meridian launches $150 million bond issue

Meridian Energy Ltd is seeking up to $150 million from investors in its 8-year unsecured, unsubordinated fixed-rate bonds, which will go to a bookbuild and close on Friday 10 March.

The offer of $100 million, plus up to $50 million in oversubscriptions, is to institutional & New Zealand retail investors. There is no public pool.

Meridian expects the bonds will be quoted on the NZX debt market and have a long-term credit rating of BBB+ from Standard & Poor’s.

The bonds have a maturity date of 20 March 2024 and an indicative margin of 1.5-1.6%/year.

Attribution: Company release.

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ASB notes rate 4.2%

ASB Bank Ltd has set the interest rate for its $285 million 5-year fixed-rate notes issue at 4.2%/year. The margin is 1.2%/year.

The whole issue of unsecured unsubordinated notes has been allocated to financial intermediaries for distribution to their clients. There’s no public pool.

They’ll start trading on the NZX debt market next Monday.

Attribution: Company release.

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Meridian considering 7-year bonds

Meridian Energy Ltd said on Wednesday it was considering making an offer of 7-year unsecured unsubordinated fixed-rate bonds to institutional & New Zealand retail investors.

It expects to release full details in early March, when it expects the offer to open.

Attribution: Company release.

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