By Rebecca Melvin
New York, Feb. 22 - National Australia Bank Ltd. priced an upsized A$1.4 billion of perpetual convertible preference shares at par to yield a floating rate of 320 basis points over the bank bill rate, according to a prospectus.
The Regulation S preference shares, which have at A$100 par, were upsized during bookbuilding from an initially talked A$750 million, and pricing came at the cheap end of talk, which was for a yield of 320 bps to 340 bps over the bank bill rate.
The preference shares are mandatorily convertible on March 22, 2021 if the volume weighted average price of shares is 56% higher than the issue date price. Holders may not put the securities.
Joint lead managers are National Australia Bank (arranger), Commonwealth Bank of Australia, Deutsche Bank AG, Evan & Partners, J.P. Morgan Australia Ltd., RBS Morgans and UBS AG.
Proceeds will be used for general corporate purposes.
The convertible preferreds, which will qualify as additional tier 1 capital, will be listed on the Australian Stock Exchange, with an anticipated trade date of March 21.
Melbourne-based National Australia Bank is the nation's largest lender.
| Issuer: | National Australia Bank Ltd.
|
| Issue: | Floating-rate convertible preferred stock
|
| Amount: | A$1.4 billion, upsized from A$750 million
|
| Maturity: | Perpetual
|
| Bookrunners: | National Australia Bank (arranger), Commonwealth Bank of Australia, Deutsche Bank AG, Evan & Partners, J.P. Morgan Australia Ltd., RBS Morgans and UBS AG
|
| Co-managers: | Bell Potter Securities Ltd., JBWere Ltd., Ord Minnett Ltd. and Morgan Stanley Wealth Management
|
| Dividend: | 320 bps over bank bill rate
|
| Price: | Par, A$100 per share
|
| Mandatory conversion: | March 22, 2021 if VWAP is 56% higher than issue
|
| Calls: | Non-callable for six years until March 20, 2019
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Price talk: | 320 bps to 340 bps over the bank bill rate
|
| Pricing date: | Feb. 21
|
| Listing date: | March 21
|
| Stock symbol: | Australia: NAB
|
| Stock price: | A$29.42 at close Feb. 21
|
| Distribution: | Regulation S
|
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