Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.Launch Radio player
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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- If John Key were a 'pretty little thing’
- MARKET CLOSE: Shares fall as investors fear more volatility; A2, Xero, Skycity decline
- How Revenue Minister McClay will tax foreign property investors
- BNZ grows worried about 'near-recession' as Key talks economy up
- Confirmed – MediaWorks group head of revenue takes off to Air New Zealand