Suncorp to issue notes to raise $350 million for ‘capital needs’
Suncorp is heading to the markets to raise $350 million through a tradeable capital notes issue.
Suncorp has been hit with a $32m backpay bill (pic: Suncorp)
The notes will have a face value if $100 and there will be a minimum investment of $5000.
They will be unsecured, subordinated and convertible. They would pay a discretionary, non-cumulative floating rate distributions that were expected to be fully franked and paid quarterly. They will have priority over ordinary shares, but are not guaranateed.
The distribution rate would be the sum of the three-month bank bill plus a margin which would be determined through the bookbuild and was expected to be in the range of 2.9 per cent to 3.10 per cent.
Suncorp said the funds would be used to fund the company’s capital needs and for general corporate and funding purposes.
