By Rebecca Melvin
New York, Dec. 14 - Kiwi Income Property Trust priced NZ$120 million of unsecured subordinated mandatory convertible notes to yield 8.95% with an initial conversion premium of 18%, according to a news release.
The offering included a primary offering of NZ$100 million, which was fully subscribed, and an entitlement offer, raising a further NZ$20 million. Initial talk was for a deal of up to NZ$125 million.
The primary offering was available to New Zealand residents and Australian institutions, and the entitlement offer to unit holders in the trust with a registered address in New Zealand.
The five-year mandatories will be convertible at NZ$1.20 per trust unit.
The offers will extend the duration of the trust's funding base, diversify sources of funding and provide flexibility for the trust to consider additional investments.
Goldman Sachs JBWere (NZ) Ltd. is joint lead manager and arranger, and Craigs Investment Partners Ltd. and Forsyth Barr Ltd. are joint lead managers.
The offering was initially launched Nov. 11.
The mandatories are expected to be listed on the New Zealand stock exchange under the code KIPGC from Dec. 16.
Auckland-based Kiwi Income Property Trust is New Zealand's largest diversified property trust.
| Issuer: | Kiwi Income Property Trust
|
| Issue: | Convertible unsecured subordinated mandatory notes
|
| Primary offer: | NZ$100 million
|
| Entitlement: | NZ$20 million
|
| Maturity: | Dec. 20, 2014
|
| Bookrunners: | Goldman Sachs JBWere (NZ) Ltd., Craigs Investment Partners Ltd., Forsyth Barr LTd.
|
| Coupon: | 8.95%
|
| Conversion premium: | 18%
|
| Conversion price: | NZ$1.20
|
| Pricing date: | Dec. 14
|
| Stock symbol: | New Zealand: KIP
|
| Stock reference price: | NZ$1.02
|
| Market capitalization: | NZ$819.23 million
|
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