Turners may offer up to NZ$25 million 6.5% two-year convertibles in exchange for 2016 convertibles

By Rebecca Melvin

New York, Aug. 12 – New Zealand’s Turners Ltd. may offer of up to NZ$25 million of two-year secured convertible bonds that are talked to yield 6.5% in a deal tied to the conversion and upcoming maturity of the company’s existing convertible bonds that mature Sept. 30, according to a company news release.

The conversion amount of the new bonds will be the lesser of NZ$3.75 and a 5% discount to the average daily volume weighted price of shares in the 90 days prior to maturity.

The new bonds are expected to be offered to existing bondholders and other investors who are New Zealand residents. Preference in allocations will be given to existing bondholders who are New Zealand residents and who elect to convert their existing bonds into shares, up to the principal amount of the converted bonds.

Second preference will be given to existing holders resident in New Zealand who have not elected to convert their existing bonds. Some or all redemption proceeds from the existing bonds may be used to subscribe for the new bonds.

The existing bonds, which have a ticker symbol of NZX: TNRHA, will be converted as per a formula for the lessor of NZ$3.00 and a 5% discount to the average daily volume weighted price of shares in the 90 days prior to the maturity date.

Existing bondholders can convert their bonds into shares in Turners if they give notice by Aug. 30.

Auckland, New Zealand-based Turners is a holding company in financial services.

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