Precinct raises $100 mln in oversubscribed bond, rate set at 4.42%
By Paul McBeth
Nov. 17 (BusinessDesk) - Precinct Properties New Zealand has raised $100 million in an oversubscribed seven-year bond,
paying annual interest at the bottom end of its indicative margin.
The Auckland-based commercial property investor's $75 million offer was oversubscribed, with all $25 million of extra
allocations taken up, it said in a statement. The price was set in a bookbuild at a margin of 1.5 percent above the
seven-year swap rate, the bottom of an indicative range between 1.5-and-1.6 percent. The bonds will pay annual interest
of 4.42 percent.
The funds raised will repay bank debt and be used for corporate purposes, the company said.
Precinct's seven-year bond is its second debt market issue this year, after it raised $150 million in September through
a four-year, fixed rate convertible note paying annual interest of 4.8 percent. Persistently low interest rates have
kept companies keen on raising capital through the debt market, which has seen $2.77 billion of new listings compared to
just $480 million of new equity listings.
The company's shares slipped 0.4 percent to $1.305, having gained 9.2 percent so far this year. The stock's trading at a
yield of 4.3 percent.
(BusinessDesk)
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