ABC Learning Centres to price A$600 million convertibles

New York, June 8 - ABC Learning Centres Ltd. plans to price A$600 million of subordinated reset convertible notes on June 12.

Commonwealth Securities Ltd. is lead manager for the offering, which will be sold to professional and sophisticated investors.

The deal will be split into two tranches, tranche A of A$400 million and tranche B of A$200 million. Except that tranche B will not be convertible until shareholder approval is obtained, the two pieces will be identical. If shareholders do not vote in favor of the transaction, tranche B will be redeemed within three months of the extraordinary general meeting on July 5.

The notes will pay interest at the bank bill swap rate plus 250 basis points until the first reset date of June 13, 2010.

At the reset, ABC can adjust the margin and reference rate for interest, the conversion discount, the next reset date and other terms.

Holders can redeem the notes between three months and 25 business days before a reset date. ABC will either pay the face amount or pay stock, using a 2.5% discount.

ABC is a Murarrie, Australia, childcare operator.

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