Chapman Tripp has advised Precinct Properties New Zealand (Precinct) on its offer of NZ$150 million of subordinated convertible notes (Notes).
The Notes were issued today and trading on the NZX Main Board is expected to commence tomorrow, 28 September.
Finance partner Cathryn Barber, corporate partner Roger Wallis and senior associate Luke Ford advised the Precinct team, which lodged the product disclosure statement for the offer last month.
The offer consisted of a priority offer of up to $25 million of Notes to eligible New Zealand-resident Precinct retail shareholders, together with a general offer to investors resident in New Zealand and certain overseas institutional investors.
The interest rate was set at 4.80% per annum – the minimum interest rate for the offer – following a successful bookbuild that included $25 million of oversubscriptions.
At the end of their four-year term, the Notes convert into Precinct ordinary shares, subject to Precinct’s option to make a cash election, with a conversion price of the lesser of $1.40 and a 2% discount to volume weighted average price (VWAP).
Cathryn Barber also advises Precinct on its syndicated bank facilities, as well as assisting on its earlier retail senior secured bond issue and US private placement.