Villa World sets 475 bps margin for five-year floating-rate bonds

By Angela McDaniels

Tacoma, Wash., March 27 – Villa World Ltd. set a margin of 475 basis points for its upcoming offering of five-year floating-rate bonds following the completion of a bookbuilding on Friday, according to a company news release.

The minimum offer size for the series A, tranche 1 bonds is A$50 million.

The margin over the market rate was expected to be 475 bps to 500 bps. Interest will be payable quarterly.

ANZ Securities Ltd. is the arranger. ANZ, Evans and Partners Pty. Ltd. and Morgans Financial Ltd. are the joint lead managers.

The bookbuilding had been scheduled to close Wednesday. The company said it closed the bookbuilding earlier than scheduled due to strong demand.

The company expects to file a prospectus with the full details of the bonds on Thursday and to issue the bonds on April 21.

The bonds will have a limitation on debt incurrence covenant capping its leverage ratio at 50%.

The proceeds of the bonds, a A$20 million underwritten share placement and a A$10 million non-underwritten share purchase plan will be used to acquire new sites.

Villa World is a residential property developer based in Broadbeach, Queensland, Australia.

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