Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Trust MCN Offers Close Fully Subscribed

7 July 2005

Kiwi Income Property Trust Mcn Offers Close Fully Subscribed

Kiwi Income Property Trust today confirmed the successful closure of its Offers of Mandatory Convertible Notes (MCNs).

The Primary Offer for $110.0 million of MCNs, and the Entitlement Offer for $32.3 million of MCNs, both closed fully subscribed. The issue price of the MCNs was $1.00 per MCN. A total of 142,272,725 MCNs have been issued raising $142.3 million.

As the Primary Offer was fully subscribed, no MCNs were issued to the Lead Manager and Underwriter, Goldman Sachs JBWere, pursuant to the underwrite of the Primary Offer. The Entitlement Offer was not underwritten.

The proceeds of the Offers of MCNs are to provide part of the funding required for the Trust’s landmark Sylvia Park project, in Auckland.

Chief Executive of the Manager of the Trust, Angus McNaughton, said the response to the Offers from both new and existing investors was extremely pleasing.

“Achieving full subscription of the Offers is a strong endorsement both of the underlying quality of the Trust’s current portfolio and the potential that the Sylvia Park project provides,” he said.

Commenting on progress with Sylvia Park, Mr McNaughton said that both specialty store leasing and construction on site were proceeding well. There continues to be strong interest from both New Zealand and international retailers who recognise the unique location of Sylvia Park in Auckland, and the limited opportunities for them to expand in this market.

The interest rate on the MCNs was set at 8.00% per annum. The first interest payment will be on 31 December 2005 and will be paid to the initial subscriber (irrespective of any transfer of the MCN by that initial subscriber prior to the first interest payment date).

Interest due to be paid on 31 December 2005 will be calculated on a daily basis from the date of allotment. Subsequent interest will be paid semi-annually in arrears on 30 June and 31 December each year to the MCN holder on each respective record date. The MCNs are unsecured and have a conversion date of 30 June 2010.

The MCNs will be quoted and traded on the NZSX from 8 July, 2005.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>