03/05/2016 - 15:09

Peet in $75m bond issue

03/05/2016 - 15:09

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Property developer Peet hopes to raise up to $75 million through a bond issue to diversify its corporate debt structure.

Peet in $75m bond issue
Peet managing director Brendan Gore.

Property developer Peet hopes to raise up to $75 million through a bond issue to diversify its corporate debt structure.

Peet is seeking to raise the funds through the issue of 750,000 bonds at a price of $100 per bond, with a minimum $50 million target set.

The funds raised under the offer will be used to refinance convertible notes issued in 2011, as well as diversify its corporate debt structure to shore up its balance sheet.

The offer will only be made to eligible shareholders, employees and directors, institutional investors who are invited by lead manager to the offer (National Australia Bank), eligible convertible noteholders, and clients of a syndicate broker that has been invited to participate.

No general public offer has been made.

Peet managing director Brendan Gore said the offer was an opportunity for the company to take advantage of demand from capital markets to diversify its debt capital structure.

“This facility enables both institutional and retail investors, including the company’s shareholders, to participate in the offer and assists Peet to diversify its corporate debt structure and increase the average maturity date of its borrowings,” he said.

“The funds raised from the offer will also enable the repayment of the Peet convertible notes and, together with the extension of the senior debt facility to October 2019, the offer further strengthens Peet’s balance sheet and supports its growth objectives.”

Peet shares closed 1 per cent lower to 93 cents each.

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