Sunland Group announces $40 million bond issue for private investors

Sunland Group announces $40 million bond issue for private investors
Sunland Group announces $40 million bond issue for private investors

Listed property developer Sunland Group has announced an unsecured note offering raising $40 million, with the right to accept up to $50 million.

Proceeds will be used to fund property development projects, property inventories and working capital of the Group.

Sunland Group managing director, Sahba Abedian, said the note issue will assist in funding the Group’s current pipeline of land, residential housing and multi-storey developments and provide working capital for other opportunities Sunland may pursue in the future.

A summary of the proposed key terms are set out below:

Issuer

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Sunland Capital Pty Limited, a wholly owned subsidiary of Sunland Group Limited

Issue Size

$40 million with the right to accept oversubscriptions of up to $50 million

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Eligible Investors

The offering will only be available to investors who qualify as professional and sophisticated investors as prescribed in and in accordance with Part 6D.2 of the Corporations Act 2001. No prospectus or other disclosure document has been lodged with ASIC or any other regulatory body

Type

Fixed Rate Medium Term Notes (“the Notes”)

Status and Ranking

The Notes will be direct, senior unsecured obligations of the Issuer, guaranteed by Sunland Group and certain wholly owned subsidiaries

Denominations

The Notes will be issued with a denomination of $1,000 subject to a minimum initial subscription parcel of $50,000

Maturity

5 years from the date of issue

Interest Rate

7.55% pa

Call Option

The Issuer will have the option of redeeming the Notes on the date falling 3 years after the date of issue and on the date falling 4 years after the date of issue

Unlisted

The Notes will be unlisted securities

Rating

The Notes will not be rated by any rating agency

Negative pledge and financial covenants

The terms of the Notes also include a negative pledge, loan to value ratio, interest cover ratio and other financial covenants and undertakings

 

 

Tags: 
Property Development

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