National Australia Bank (ASX: NAB) today closed the offer of the NAB Subordinated Notes 2 (ASX: NABPE) raising $943.2 million (up from the indicative offer size of $800 million). Under the reinvestment offer, ~$539 million of the NAB Subordinated Notes (ASX: NABHB) were repurchased and cancelled leaving ~$634 million of NABHB outstanding.
For the purposes of the exchange calculation the maximum conversion number is set at 15.4991 (Issue Date VWAP of $32.26) in respect to mandatory exchange. 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 3.9950% p.a. which translates to a cash distribution of $1.0070 as the first interest payment.
The notes are expected to commence trading on the 21st of March 2017 at 12:00pm on a deferred settlement basis and on a normal settlement basis (T+2) on the 27th of March 2017.