Fletcher Building capital notes roll over at 5.4% from 8.9%

The impact of low global interest rates on corporate funding needs is well demonstrated in the announcement by Fletcher Building of the rollover terms on $75 million of capital notes that mature on March 15.

The long-dated corporate bonds are currently paying 8.9 percent annually, but the rate on offer at rollover until March 15, 2019, is 3.5 percentage points lower, at 5.4 percent a year.

Noteholders can retain some or all of their notes on the new terms or have them paid out. Fletcher Building is exercising the option to pay cash rather than convert the notes to ordinary shares in the company.

Noteholders have until February 26 to make their election.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7054 -0.0030 -0.42%
AUD 0.9526 -0.0015 -0.16%
EUR 0.6403 -0.0022 -0.34%
GBP 0.5268 -0.0019 -0.36%
HKD 5.4732 -0.0231 -0.42%
JPY 71.7090 -0.6170 -0.85%

Commods

Commodity Price Change Time
Gold Index 1322.4 60.100 2016-06-24T00:
Oil Brent 49.0 0.120 2016-06-24T00:
Oil Nymex 47.6 -2.520 2016-06-24T00:
Silver Index 17.8 0.440 2016-06-24T00:

Indices

Symbol Open High Last %
NZX 50 6667.8 6697.7 6667.8 0.29%
NASDAQ 4715.8 4798.2 4910.0 -4.12%
DAX 9516.9 9587.4 9557.2 0.06%
DJI 17946.6 17946.6 18011.1 -3.39%
FTSE 6138.7 6138.7 6138.7 -0.67%
HKSE 19982.7 20329.2 20259.1 0.13%
NI225 15153.1 15324.0 14952.0 2.39%
ASX 5113.2 5154.9 5113.2 0.47%