On 10 October 2018, Centuria Capital No.2 Fund ("The Issuer") announced a new issue, Centuria Notes II (ISIN: To be Confirmed). The notes are expected to be issued on the 22 October 2018 and raise between $75-$100 million across both the floating ($25 to $50 million) and fixed ($25 to $50 million) tranches. The proceeds will be used to maintain/increase the Issuer's existing stake in the Centuria Metropolitan REIT (ASX: CMA) as well as for general corporate purposes. These securities are to be sold to wholesale investors only (no prospectus being issued) and are not listed on the Australian Securities Exchange (ASX).
These securities are structured as direct, senior secured notes and interest payments are non-discretionary, fixed (or floating) rate and paid semi-annually (or quarterly) in arrears. The interest is guided to be set at a margin of [4.25%] p.a. above the 90-Day BBSW for the floating rate tranche and at [6.50%] for the fixed-rate tranche. The notes are senior in their ranking and Investors will benefit from a guarantee providing access to Group (Centuria Capital Limited (ASX: CNI) cash flows for debt servicing. Investors are protected by financial covenants, event of default mechanisms (including cross-default) and a negative pledge.
The issuer has the right but not the obligation to redeem the notes prior to maturity on the first call date (21st of October 2020) or on any interest payment date thereafter or if a Tax or Accounting Event occurs. On first call date, the call is at 102.0% of par value (but declines ratably thereafter). The holder may request early redemption of the notes on the occurrence of a Change of Control event. The legal final maturity of the notes is the 21st of April 2023.
Summary of the Transaction:
|
Product Type |
Corporate Bonds |
Last Price |
$100.00 |
|
Issue Size* |
[$50,000,000-$100,000,000] |
Accrued |
$0.00 |
|
Par Value |
$100 |
Capital Price |
$100.00 |
|
Dual Tranche |
Floating/Fixed |
Running Yield |
[6.1759% / 6.50%] |
|
Payment Frequency |
Quarterly/Semi Annual |
Yield to Maturity |
[6.7433% / N/A] |
|
Current Distribution** |
[6.1759% / 6.50%] |
Trading Margin |
[4.25%] |
|
Issue Margin** |
[4.25%] |
Optional Call Date |
21 October 2020 |
|
Franking Credits Inclusive |
No |
Legal Final Maturity |
21 April 2023 |
*Issue size subject to change.
Click here for access to our Fixed Research Report or here for the Floating Research Report.
