Archive | Debt securities

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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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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