BlueScope calls their 2018 USD bonds, Genworth announces its 1H16 results and we add GEO Group to our DirectBond list
BlueScope is calling its 7.125% US dollar bonds due 2018
As expected and highlighted in a previous WIRE article
, BlueScope has decided to call the remaining US$110m of its original US$300m 2018 bonds. BlueScope will pay US$101.781 per US$100 face value. The payment is expected to occur on or soon after 21 November 2016.
If you are a holder of the 2018 BlueScope bonds you should soon receive an email setting out the timeline for the coming weeks and the date we expect funds to be in your account.
While it is always nice for investors to receive their principal back from companies it does leave a problem of reinvestment. At the moment, we can offer a wide variety of high yielding AUD and foreign currency bonds.
We suggest you consider switching out or selling your BlueScope bonds prior to the 21 November call date, while there is currently a bid close to the call price. This can be done up until Friday 11 November 2016.
Below are some reinvestment alternatives for USD bonds. For more information, please speak to your local dealer.
| Company | Maturity date | Bond type | Capital structure | Yield to maturity | Income/running yield | Minimum investment |
| BlueScope Steel Finance | 15/05/2021 | Fixed | Senior debt | 4.65% | 6.05% | USD10,000 |
| GEO Group | 01/04/2023 | Fixed | Senior debt
| 7.09% | 5.69% | USD10,000 |
| IAMGOLD Corporation | 01/10/2020 | Fixed | Senior debt
| 6.56% | 6.71% | USD10,000 |
| Navient Corporation | 25/09/2023 | Fixed
| Senior debt
| 6.86% | 7.09% | USD10,000 |
| Virgin Australia | 15/10/2021 | Fixed
| Senior debt
| 6.84% | 7.55% | USD10,000
|
Note: Prices are accurate as at 1 November 2016 but subject to change
All bonds listed are available to wholesale investors only
Genworth
Genworth Financial Mortgage Insurance Pty Ltd (Genworth Australia) reported its 1H16 results. Further, China Oceanwide and Genworth announced they have entered into a definitive agreement, under which China Oceanwide has agreed to acquire all of Genworth’s outstanding shares.
More information can be found here.
GEO Group added to our DirectBond list
Established in 1984, Geo Group Inc. (GEO) is a real estate investment trust (REIT) specialising in the ownership, leasing and management of correctional, detention and re entry facilities. It also offers offender transportation services to government customers in the United States and internationally.
On 25 October 2016, we added the GEO Group 2023 bond to our DirectBond list. It is US dollar denominated with an indicative yield to maturity/worst* of 7.09%. The bond is available to wholesale investors only, with minimum investments of USD10,000 and denominations of USD1,000 thereafter.
Note: Prices are indicative only and accurate as of 1 November 2016.
*The yield to worst (YTW) is the lowest yield an investor can expect when investing in a callable bond.