On the 14th of February 2017, Challenger Limited (ASX: CGF) announced that it intends launch Challenger Capital Notes 2 in the first quarter in 2017 (subject to market conditions).
The group outlined that the new issue will be similar to Challenger Capital Notes (ASX: CGFPA) and is targeting to raise $350 million. The notes will pay franked distributions on a quarterly basis and will be quoted on the ASX. The proceeds from the transaction will constitute Additional Tier 1 Equity Capital for Challenger Life Company (a operating subsidiary of Challenger Limited) and is expected to increase the Prescribed Capital Amount (PCA) ratio from 1.39x to 1.52x on a pro-forma basis.
Holders of CGFPA will receive separate communications regarding the launch with details on how to participate. An accompanying prospectus will be available when the offer is launched.
