This article is from the Australian Property Journal archive
FKP Property Group has completed the bookbuild and pricing of its issue of senior, unsecured, guaranteed convertible bonds totalling $125 million.
The convertible bonds, due January 2016, were sold to institutional, professional and sophisticated investors and will carry a fixed coupon of 8.0%, payable on a semi-annual basis, for a term of five years.
The initial conversion price is $1.014 representing a 20% premium to FKP’s closing price of $0.845 on 9 December 2010.
Following the exercise, balance sheet gearing is 28.2% and the weighted average debt maturity is now 2.4 years compared to 1.4 years at 30 June 2010.
CEO Peter Brown said the combination of the convertible bond issue and extension of $275 million of major retirement facility provides FKP with a stable capital base.
Australian Property Journal