- The note offering opened yesterday
- It closed early and was oversubscribed
- Contributes to the company debt maturity profile
Peet Limited (ASX: PPC) launched a $75 million unsecured note offering yesterday, one of three moves the company said was to contribute towards the upcoming maturation of bonds.
Today, the company announced that it had successfully closed the offering.
“The offering was well oversubscribed and was closed early.”
Peet Limited
“The Notes carry a floating rate of (three-month) BBSW plus 485bps per annum, have a maturity date of 30 September 2026 and are scheduled to settle on 4 June 2021.”
Peet said the offer was limited to “eligible professional and sophisticated investors in accordance with Part 6D.2 of the Corporations Act 2001 (Cth).”
Managing Director and CEO, Brendan Gore, was positive about the result:
“Peet received strong investor demand for the transaction allowing the margin to be tightened from initial launch,”
Brendan Gore, MD and CEO, Peet Limited
The note issuance and previously announced increase and extension of the Group’s existing senior debt facility is said to, “increase the weighted average debt maturity from 1.7 years as at 31 December 2020 to 3.2 years as at 30 June 2021.”
Peet also said the impact will be to “reduce the weighted average cash cost of debt, on a proforma basis as at 31 December 2020, from 7.3% to 6.1%.”
“together with the previously announced increase and extension of the Group’s senior debt facility, provides additional tenor to the Company’s debt maturity profile.”
Brendan Gore, MD and CEO, Peet Limited
