The Warehouse's $100 million bond offer has closed fully subscribed today, with trading on the NZDX due to start tomorrow.The country's biggest retailer first signalled the bond issue in February, with the proceeds earmarked for “general corporate p
The Warehouse’s $100 million bond offer has closed fully subscribed today, with trading on the NZDX due to start tomorrow.
The country’s biggest retailer first signalled the bond issue in February, with the proceeds earmarked for “general corporate purposes,” which could include paying down debt, reinvestment, acquisitions or funding a return of capital to shareholders.
The bond issue was formally launched the next month when it unveiled its interim results and despite recording flat revenue and operating profit, the company still found plenty of interest in the bonds.
It soon confirmed that bids received for its inaugural bond offer were more than twice the $100 million issue size, wiping out the need for a public pool, with the entire amount reserved for the clients of those who participated in the bookbuild process.
The bonds are being allotted today, with an interest rate of 7.37% a year with a margin of 2.15%
The unsecured, fixed rate bonds – which matures in June 2015 – are expected to start trading on the NZDX tomorrow, with investors alse sent their statements of holding on the same day.
The company’s share price (NZX:WHS) has fallen 5.01% since the interim results announcement last month, and was down 5c to $3.79 in this morning’s trading.
