Fletcher Building capital notes rollover at 5.4 percent from 8.9 percent
Jan 29 (BusinessDesk) - The impact of low global interest rates on corporate funding needs is well demonstrated in the announcement by Fletcher Building of the rollover terms on $75 million of capital notes that mature on March 15.
The long-dated corporate bonds are currently paying 8.9 percent annually, but the rate on offer at rollover until March 15, 2019 is 3.5 percentage points lower, at 5.4 percent a year.
Noteholders can retain some or all of their notes on the new terms or have them paid out. Fletcher Building is exercising the option to pay cash rather than convert the notes to ordinary shares in the company.
Noteholders have until February 26 to make their election.