Summerset Group plans to sell up to $100 million of seven-year, fixed-rate bonds as the retirement village operator and developer cuts it reliance on bank debt.
The bond offer for $75 million with the ability to accept oversubscriptions of $25 million is expected to open the week of September 10 and Summerset said it would provide more details at the time. The notes are expected to be listed on the NZX debt market.
Summerset chair Rob Campbell said he is pleased the firm is considering another retail bond issue after raising $100 million in June 2017, with an oversubscription of 33.3 per cent. The interest rate for those bonds - which will mature in July 2023 - was set at 4.78 per cent per annum. They last traded at a yield of 3.7 per cent.
"Another bond issue allows Summerset to continue to diversify funding sources and tenor, and provide funding certainty for future years," said Campbell.
Wellington-based Summerset had net debt of $364.5 million as at June 30, with $279.3 million drawn from its $500 million banking facility. The bank debt matures in two tranches: August 2020 and March 2022.
