Tuesday 17 June 2014 by Alen Golubovic Company updates

Plenary seven year 7.50% fixed rate notes commence trading

Key points:

  1. Plenary Bond Co Pty Ltd as trustee for the Plenary Bond Finance Unit Trust (PBF) is a special purpose finance subsidiary created specifically to act as the borrowing vehicle for the issuance of notes with diversified exposure to the equity distributions in eight infrastructure projects
  2. PBF is a wholly owned subsidiary of the Plenary Group Pty Ltd as trustee for the Plenary Group Unit Trust (‘Plenary Group’). Plenary Group is a leading sponsor of Public Private Partnerships in Australia (PPPs), with extensive history and experience in the development and management of PPPs
  3. The A$35m note will pay a fixed rate of 7.50% p.a. and has a final maturity of seven years but can be called by the issuer after four, five or six years at $103.00, $102.00 and $101.00 respectively
  4. The Plenary notes settled on Monday 16 June and has commenced trading in the secondary market

The Plenary notes will pay wholesale clients a fixed rate of 7.50% p.a. and have a final maturity of seven years but can be called by the issuer after four, five or six years at $103.00, $102.00 and $101.00 respectively. There is also an investor option to request redemption at $101.00 in the event of a change of control of the issuer.

The A$35m notes will partially amortise over the seven year term, with semi-annual amortisation commencing in October 2017 in A$2m increments and an additional $A3.5m amortisation scheduled in April 2019. Based on the scheduled amortisation amounts, a final bullet payment of $17.5m is scheduled at the maturity date.

The notes are available to wholesale investors only and can be transacted in $10,000 face value minimum parcels. The two-way indicative market is $100.25 (bid)/$101.75 (offered).

Please call your FIIG dealer if you are interested in transacting in the secondary market or wish to receive a copy the FIIG research report on the Plenary notes. FIIG was the Sole Lead Arranger for this transaction and received fees in this role from Plenary.