By Abigail W. Adams
Portland, Me., March 22 – Cromwell Property Group priced €230 million of seven-year convertible bonds with a coupon of 2.5% and an initial conversion premium of 7.5% after the market close on Wednesday, according to a company news release.
The bonds will be issued by Cromwell subsidiary Cromwell SPV Finance Pty Ltd.
The deal came at the cheap end of talk for a coupon of 2% to 2.5% and a conversion premium of 7.5% to 12.5%.
Credit Suisse Ltd. (Singapore) and Goldman Sachs Australia Pty. Ltd. were joint bookrunners for the offering.
The bonds are convertible into the company’s stapled securities with a conversion price of A$1.177. The maximum number of stapled securities that may be issued upon conversion without security holder approval is 94,103,065.
The bonds are puttable on Aug. 1, 2022.
They will be listed for trade on the Singapore Exchange Securities Ltd.
Proceeds will be used to repurchase up to €150 million of the company’s convertible bonds due 2020. The company has already agreed to repurchase €92.7 million of the convertible bonds due 2020.
The company has the option to redeem any remaining bonds due 2020 at par if 10% or less of the original amount is outstanding.
Cromwell Property Group is a Brisbane, Australia-based global real estate investment management company.
| Issuer: | Cromwell SPV Finance Pty Ltd. (Cromwell Property Group)
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| Securities: | Convertible bonds
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| Amount: | €230 million
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| Maturity: | March 29, 2025
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| Bookrunners: | Credit Suisse Ltd. (Singapore) and Goldman Sachs Australia Pty. Ltd.
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| Coupon: | 2.5%
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| Price: | Par
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| Conversion premium: | 7.5%
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| Conversion price: | A$1.177
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| Put option | Puttable on Aug. 1, 2022
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| Pricing date: | March 21
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| Settlement date: | March 29
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| Stock symbol: | ASX: CMW
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| Stock price: | A$1.095 at the market close March 21
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| Market capitalization: | A$2.12 billion
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