Aveo cuts conversion price of 8% guaranteed convertible notes

By Marisa Wong

Madison, Wis., Dec. 19 - Aveo Group said it lowered the conversion price of its 8% guaranteed convertible notes to $4.89 from $5.457.

The adjustment results from an entitlement offer of five fully paid ordinary stapled securities for every nine existing ordinary stapled securities at a price of $1.30 per security. The entitlement offer was completed this month.

The company announced on Nov. 25 that it will redeem A$87.4 million of the 8% convertibles on Jan. 5 following a put exercise. Following the redemption, A$1 million of the notes will remain outstanding, and the conversion date for those bonds is Jan. 5, 2016.

The company originally issued A$125 million of the 8% convertibles.

With corporate offices in Sydney and Brisbane, Aveo operates retirement communities throughout Australia.

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