On the 30th of May 2018, CVC Limited (ASX: CVC) announced a new 5-year, $50 million convertible note, to be issued through Evans & Partners and listed on the ASX. The notes will provide funding to expand the company’s diversified and actively-managed portfolio of assets.
The notes are structured as floating rate, redeemable, unsecured and convertible with distributions paid on a quarterly basis. To be issued on the 22nd of June 2018, coupons will be priced at 90-day BBSW plus a margin of 3.75-4.25% that will be determined post-bookbuild.
Noteholders will have an equity conversion right at each quarterly interest payment date, with an embedded call strike of $3.40 (a 30% premium on the Volume-Weighted Average Price of CVC ordinary shares traded in the ten business days prior to note issuance). Holders will be protected by a negative pledge, event of default and redemption rights, as well as protection for share price corporate actions.
The company holds an early call option in year three (2021) at $104.00 and $102.00 in year four (2022), with conversion rights granted upon the issuer’s early call. The convertible notes will mature in June 2023 with a repayment of face value if conversion does not occur.