Suncorp plans A$250 million convertible preferreds to yield bank bill rate plus 340 bps-360 bps

By Rebecca Melvin

New York, March 31 - Australia's Suncorp Group Ltd. said it plans to price A$250 million of perpetual convertible preference shares, which will yield a floating-rate dividend based of the bank bill rate plus a margin of 340 basis points to 360 bps, according to a company news release.

Pricing is set for April 7.

The preferreds may be exchanged on June 17, 2020, and they will mandatorily convert into ordinary shares on June 17, 2022 subject to conditions unless they are exchanged.

The securities are expected to be quoted on the Australian Securities Exchange.

UBS, Deutsche Bank and National Australia Bank are joint lead managers of the deal.

Proceeds are earmarked to fund the capital requirements of one or more regulated entities within the Suncorp Group.

Suncorp is a finance, insurance and banking group based in Brisbane, Queensland, Australia.

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