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Conversion of 8.95% Mandatory Convertible Notes
NZX & MEDIA RELEASE
7 November 2014
Conversion of 8.95% Mandatory Convertible Notes (NZX: KIPGC)
Kiwi Income Property Trust (KIP) advises that the 8.95% Mandatory Convertible Notes (MCNs) that were issued in 2009 will convert into ordinary KIP Units (Units) on 20 December 2014.
In accordance with terms contained in the Prospectus dated 10 November 2009 (Prospectus), the key dates associated with this event are as follows:
| Event | Explanation | Date |
| Conversion announcement date | The day that the conversion price will be determined and announced to NZX | 8 December 2014 |
| Cessation of trading | The date on which the MCNs (NZX Code: KIPGC) will cease to trade to facilitate the conversion of MCNs into Units (NZX Code: KIP) | 5.00pm, 15 December 2014 |
| Conversion record date | The date on which the MCN register closes to determine the holder who is entitled to receive Units upon conversion | 5.00pm, 18 December 2014 |
| Conversion date | The date set for cancellation of the MCNs in exchange for new Units | 20 December 2014 |
| Allotment date | The date set for allotment of Units to former MCN holders and issuance of Security Holding Notices | 20 December 2014 |
excludes any cash
distributions not attributable to MCN holders upon
conversion of the MCNs into Units on the conversion date (20
December 2014). It is expected that the record date for
KIP’s interim distribution will be 5.00pm on 2 December
2014, resulting in an ex-date of 8.00am on 28 November 2014.
This means that the value of the cash distribution will be
deducted from each of the daily VWAPs during the period 10
November 2014 to 27 November 2014 inclusive.
Units in KIP which are issued as a result of the conversion will be entitled to future distributions, with the first expected to be the distribution payable for the six-month period to 31 March 2015, payable in June 2015. Distributions are currently paid semi-annually, in or around June and December each year.
In addition to the conversion event, holders of MCNs will also receive their final interest payment on 22 December 2014. Key dates associated with this event are as follows:
| Event | Explanation | Date |
| Interest record date | The date on which the MCN register closes to determine the holder who is entitled to receive the interest payment | 5.00pm, 18 December 2014 |
| Interest payment date | The date upon which the final interest payment is made | 22 December 2014 |
ENDS
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