On 15 February 2021, Macquarie Group Limited (ASX: MQG) launched an offer for Macquarie Capital Notes 5 (MCN5, ASX Code: MQGPE), expected to raise $500 million. The offer is accompanied by a Reinvestment Offer for holders of Macquarie Capital Notes 2 (MCN2, ASX: MQGPB), which are expected to be called (first call date 17 March 2021).
The securities are structured as perpetual, subordinated, unsecured and convertible notes. Distributions are discretionary, non-cumulative, floating rate payments, franked at the same rate as MQG ordinary shares (currently 40%) and paid on a quarterly basis in arrears until MCN5 are exchanged, redeemed or written- off. The margin is guided to be 3.00%-3.20% p.a. above 90-day BBSW.
This security has no fixed maturity date but is scheduled for mandatory exchange into MQG ordinary shares on 18 September 2030, or the next distribution payment date on which the exchange conditions are satisfied. At the Issuer's discretion, the Notes may be resold or exchanged, or subject to APRA approval redeemed on 18 September 2027, 18 March 2028 or 18 September 2028.
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