Sharechat Logo

Summerset announces indicative rate for $100M bond offer

Monday 10th September 2018

Text too small?

Summerset Group will sell up to $100 million of seven-year fixed-rate bonds as it cuts its reliance on bank debt.

The retirement village operator and developer announced its planned offer last week. At the time chair Rob Campbell said he was pleased the firm was considering another retail bond issue after raising $100 million in June 2017, with an oversubscription of 33.3 percent. The interest rate for those bonds - which will mature in July 2023 - was set at 4.78 percent per annum. They last traded at a yield of 3.7 percent.

The new issue will pay a minimum interest rate of 4.15 percent per annum and is expected to be priced at an indicative margin of 1.65 percent to 1.75 percent above the seven-year swap rate, which was recently at 2.53 percent. That implies the final rate will be set at 4.18 percent to 4.28 percent. The actual margin will be set on Sept. 14 after a bookbuild process. The bonds will be issued on Sept. 24.

Wellington-based Summerset had net debt of $364.5 million as at June 30, with $279.3 million drawn from its $500 million banking facility. The bank debt matures in two tranches: August 2020 and March 2022.

The firm has appointed ANZ Bank New Zealand as arranger, and ANZ, First NZ Capital Securities, Forsyth Barr and Hobson Wealth Partners as joint lead managers. There is no public pool for the bonds.

Summerset shares last traded at $7.60 and have risen 38 percent this year.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares dip as global trade jitters weigh on A2, F&P
NZ dollar set for weekly gain after Reserve Bank surprise
Burger Fuel exploring sale after review questions listing merits
New net migration data to remain rubbery for quite some time
NZX to push sales this year after reshaping business dents 2018 profit
Slowing new orders growth weighs on January PMI
New NZ dry dock a basis for new industry - KiwiRail
Wellington Drive beats 2H sales forecast, will meet earnings guidance
NZIQS decides more training is the answer to past president's misconduct
February 15th Morning Report

IRG See IRG research reports