Kiwi Income Property may raise $150m

Kiwi Income Property Trust plans to raise as much as $150 million by selling five-year convertible notes to repay existing debt and potentially acquisitions.

The mandatory convertible notes offer would be to New Zealand residents and Australian institutions, with the entitlement offer to New Zealand registered unit holders.

“Proceeds will initially be used to reduce net bank debt and may be applied to new investment opportunities, KIP said in a statement.

Its existing 8% convertible notes mature on June 30, 2010. They were last at a yield of 10.98%, according to Reuters.

The shares last traded at $1.09 and have gained 7.9% this year.The trust is being advised by Goldman Sachs JBWere. 

Businesswire.co.nz

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