Event
As a result of the announced CBA A$5bn pro rata renounceable entitlement offer, CBA will adjust the Maximum Conversion Number for PERLS III. This is in accordance with the terms of PERLS III and a notice will be sent to relevant investors.
Highlights
No adjustment applies in the case of the PERLS VI or PERLS VII, these being Basel 3 compliant AT1 capital. A maximum number of shares applies to these B3 AT1 securities where a Capital Trigger Event, Non-Viability Trigger Event or Change of Control Event occurs. Interestingly, CBA announced that “The Group has requested APRA approval to adjust the Maximum Exchange Number of its other hybrid Tier 1 and Tier 2 capital securities but APRA has not provided approval. The Group will seek to discuss this further with APRA.”
- PERLS VI (CBAPC) has a maximum conversion number of 8.92, based on a CBA share price of $11.22 (20% Issue Date VWAP)
- PERLS VII (CBAPD) has a maximum conversion number of 6.36, based on a CBA share price of $15.72 (20% Issue Date VWAP)
