Suncorp-Metway boosts planned offering of five-year convertible preferreds to A$700 million

By Jennifer Chiou

New York, May 16 - Australia's Suncorp-Metway Ltd. announced an increase to its planned offering of five-year mandatory convertible preference shares to A$700 million from A$325 million.

The preferreds, which will be sold at a par price of $100, will mandatorily convert into Suncorp shares on June 14, 2013.

As already reported, the preference shares qualify as non-innovative residual tier 1 capital and will form part of Suncorp Group's capital management strategy. There previously was a greenshoe of up to A$75 million.

Citi Global, JPMorgan, Macquarie and UBS are joint lead managers and joint bookrunners of the offering, which was previously announced to open on May 16 and expected to close on June 4.

The preferred dividends will be floating rate, quarterly and non-cumulative. The margin on the preferreds is set a 3.2% per year.

Proceeds are earmarked for general corporate purposes, including financing asset growth and repaying existing debt.

Announcement of the offer was originally made on May 6.

Suncorp is a finance, insurance and banking group based in Brisbane, Australia.

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