Precinct Notes Offer

Investment Opportunities

Posted 5 Sep 2017

Precinct Properties New Zealand Limited (“Precinct”) is making an offer of $150m of four year, fixed rate, subordinated convertible notes ("Notes") to institutional and New Zealand retail investors.

The offer is now open and consists of:

  • a Priority Offer of up to $25m, which is open to eligible New Zealand Retail Shareholders; and
  • a General Offer of $125m (which includes oversubscriptions of $25 million). The General Offer is open to investors resident in New Zealand and certain overseas institutional investors.

Forsyth Barr is Joint Lead Arranger and Manager to the offer.

The interest rate has been set at 4.80% per annum, which was the minimum interest rate for the offer. 

The conversion price for conversion of the Notes into ordinary shares of Precinct has been set at the lesser of:

  • $1.40 per Share (“Conversion Price Cap”); and
  • a 2% discount to the market price of the Shares, based on the average of the daily VWAP over the 20 Business Days prior to the conversion announcement date.

Rather than converting the Notes into Shares, Precinct may elect to instead pay a cash amount to Noteholders at the end of the term.  In this case, Noteholders would be paid an amount equal to the market price (as described above) of all the Shares that would have otherwise been issued on conversion of their Notes, so that they receive an equivalent value to those Shares and will similarly benefit from any appreciation of the Share price above the Conversion Price Cap.

Full details of the offer are contained in the Product Disclosure Statement, a copy of which can be found here, and must be obtained by investors before they decide to acquire any Notes. 

Interested investors can register their interest here, or by contacting their advisor on 0800 367 227. Indications of interest will not constitute an obligation or commitment of any kind. 

Precinct shareholders can register their interest in the Priority Offer at www.precinctnotesoffer.co.nz.

Forsyth Barr Limited is a Joint Lead Arranger and Joint Lead Manager to the Offer and will receive fees in relation to this role.  This information is general in nature and should not be regarded as personalised investment advice. Disclosure Statements are available on request and free of charge.

If you're new to investing or just have a question please call us: 0800 367 227