By Phil Boeyen, ShareChat Business News Editor
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Wednesday 1st August 2001 |
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The UK-based investment company has launched its capital note issue offer with a minimum 9% interest rate, and has allocated the notes on a firm basis to brokers.
GPG says the offer, through its subsidiary GPG Finance, is one of the largest single commercial debt issues ever undertaken in New Zealand and because of its size will involve an allocation only distribution system through members of the NZSE.
The issue is fully underwritten by J B Were.
GPG's NZ executive director, Tony Gibbs, says he expects a strong response given the company's track record and the coupon rate being offered.
The capital notes are unsecured and subordinated. The interest rate is calculated as being the greater of 9% or the 2006 Government Stock Bid Rate plus a margin of 2.75 per cent per annum, or such greater rate as GPG might determine.
After five years there is also the option to convert to shares or to roll over for a further term.
"This gives investors plenty of options and we think the issue will go very well," says Mr Gibbs.
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