Goodman Group starts exchange for 6%, 6.375% notes to amend covenants

New York, May 11 – Goodman Group announced an exchange offer to amend its $500 million of 6% notes due 2022 and its $500 million of 6.375% notes due 2021.

The new notes will have a tightened covenant that sets the leverage requirement at 55% instead of 60% and will no longer have an unencumbered real property assets covenant.

Goodman will issue an equal principal amount of new notes with identical coupon, maturity, payment terms and guarantee for any notes tendered in the offer.

Completion of the exchange is subject to a majority of the existing notes being tendered and the company’s credit rating being upgraded.

If successful, Goodman will formalize the reduction of its target leverage range to 0% to 25% from the current 25% to 35% goal.

Goodman said holders of 32% of the 6% notes and 33% of the 6.375% notes have agreed to participate.

Goodman Group is a Sydney, Australia-based property group.

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