Challenger limited (ASX: CGF) today closed the offer of Challenger Capital Notes 2 (ASX: CGFPB) raising $460 million (up from the indicative offer size of $350 million).
Of this, the group allocated allocated $430 million on a firm basis under the Broker Firm and Institutional Offers and $30 million under the Securityholder Offer.
For the purposes of the exchange calculation the maximum conversion number is set at 16.2602 (Issue Date VWAP of $12.30) in respect to mandatory exchange (40.6504 in respect of any other conversion). We remind investors that if conversion cannot occur for any reason the notes will be written off and all holders rights terminated.
The interest rate for the first interest period is 4.3295% p.a. which translates to a cash distribution of $1.63 as the first interest payment.
The notes are expected to commence trading on the 10th of April 2017 on a deferred settlement basis and on a normal settlement basis (T+2) on the 13th of April 2017.