Key points:
- Plenary Bond Co Pty Ltd as trustee for the Plenary Bond Finance Unit Trust (PBF) is a special purpose finance subsidiary created specifically to act as the borrowing vehicle for the issuance of notes with diversified exposure to the equity distributions in eight infrastructure projects
- PBF is a wholly owned subsidiary of the Plenary Group Pty Ltd as trustee for the Plenary Group Unit Trust (‘Plenary Group’). Plenary Group is a leading sponsor of Public Private Partnerships in Australia (PPPs), with extensive history and experience in the development and management of PPPs
- The A$35m note will pay a fixed rate of 7.50% p.a. and has a final maturity of seven years but can be called by the issuer after four, five or six years at $103.00, $102.00 and $101.00 respectively
- The Plenary notes settled on Monday 16 June and has commenced trading in the secondary market
The Plenary notes will pay wholesale clients a fixed rate of 7.50% p.a. and have a final maturity of seven years but can be called by the issuer after four, five or six years at $103.00, $102.00 and $101.00 respectively. There is also an investor option to request redemption at $101.00 in the event of a change of control of the issuer.
The A$35m notes will partially amortise over the seven year term, with semi-annual amortisation commencing in October 2017 in A$2m increments and an additional $A3.5m amortisation scheduled in April 2019. Based on the scheduled amortisation amounts, a final bullet payment of $17.5m is scheduled at the maturity date.
The notes are available to wholesale investors only and can be transacted in $10,000 face value minimum parcels. The two-way indicative market is $100.25 (bid)/$101.75 (offered).
Please call your FIIG dealer if you are interested in transacting in the secondary market or wish to receive a copy the FIIG research report on the Plenary notes. FIIG was the Sole Lead Arranger for this transaction and received fees in this role from Plenary.