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SYDNEY, Dec 17 (Reuters) - Australian waste management firm
Transpacific Industries Group Ltd (TPI.AX) said it has added
A$32.5 million ($28 million) to its issue of convertible notes,
bringing total amount to A$347.5 million.
The seven-year convertible notes offer, initially completed
last month, will help refinance debt acquired with the
acquisition of waste collection firm Cleanaway.
Convertible bonds stand between debt and equity, allowing
companies to avoid issuing, and diluting, more stock at a time
when their share price is expected to increase.
Investors receive regular payments and also benefit from
the share price appreciation when the securities convert into
equity.
The increase offers the same terms as the initial issue and
will settle on Dec. 18.
The transaction, documented under regulation S which
excludes U.S. investors, will pay a coupon of 6.75 percent per
year and carry a conversion price of A$14.8648 per ordinary
share, representing a 36 percent premium based on the reference
price on Nov. 8.
The notes are subordinated to Transpacific's senior debt
facilities and are listed on the Singapore Stock Exchange.
Investors can redeem the notes after five years.
JPMorgan solely managed and underwrote the offer with ANZ
as co-arranger.
($1=A$1.16)
(Reporting by Cecile Lefort; Editing by James Thornhill)
