By Rebecca Melvin
New York, April 1 - Australia's Suncorp Group Ltd. said it has allocated an upsized A$360 million of floating-rate perpetual convertible preference shares and set a margin rate of 340 basis points per year over the 90-day bank bill rate, according to a news release.
The offering was initially expected to be A$250 million in size. Pricing came at the rich end of 340 bps to 360 bps over the bank bill rate. Final pricing is set for April 7.
UBS, Deutsche Bank and National Australia Bank are joint lead managers of the deal.
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.
Proceeds are earmarked to fund the capital requirements of one or more regulated entities within the Suncorp Group.
The securities are expected to be quoted on the Australian Securities Exchange.
Suncorp is a finance, insurance and banking group based in Brisbane, Queensland, Australia.
| Issuer: | Suncorp Group Ltd.
|
| Issue: | Convertible preferred stock
|
| Amount: | A$360 million, increased from A$250 million
|
| Maturity: | Perpetual
|
| Joint lead managers: | UBS, Deutsche Bank and National Australia Bank
|
| Dividend: | Bank bill rate plus 340 bps
|
| Price: | Par
|
| Price talk: | Bank bill rate plus 340 bps to 360 bps
|
| Mandatory conversion: | June 17, 2022 upon certain conditions
|
| Stock symbol: | Australia: SUN
|
| Stock price: | A$12.76 at close April 1
|
| Market capitalization: | A$16.31 billion
|
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