Suncorp-Metway begins off-market buyback offer for perpetual floaters

By Toni Weeks

San Luis Obispo, Calif., May 5 - Suncorp-Metway Ltd. (Suncorp Bank) announced it has begun an offer to repurchase all of its unsecured perpetual floating-rate subordinated notes, according to a notice.

The offer is available to noteholders as of 5 a.m. ET on Friday May 2 who have a registered address in Australia or New Zealand.

Suncorp is offering a fixed price of A$80 per note, which is a 10% premium to the trading price of the notes (ASX: SBKHB) on May 2 as well as a 10% premium to the one-month volume-weighted average price.

The buyback is part of Suncorp's ongoing capital management program, according to Suncorp group chairman Ziggy Switkowski.

"These notes were issued at A$100 in 1998 in a different financial and regulatory environment and with a margin that reflected the financial markets at that time," Switkowski said.

"Since the issue of the notes, there have been significant changes in economic conditions, which have resulted in the value of the notes, along with other similar instruments, being depressed for some time."

The voluntary buyback is an opportunity for noteholders to sell their notes at a premium to recent trading prices, the notice said.

The offer expires at 5 a.m. ET on June 6, and results will be announced June 10. Settlement is expected June 20.

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

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