Sunland Group Limited is an ASX listed residential property development group with over 30 years’ experience operating primarily in South-East Queensland, Sydney and Melbourne. It is seeking to raise $40m - $50m in fixed rate, unsecured notes for general corporate purposes
The issuer
Sunland Capital Pty Ltd is a wholly owned subsidiary of Sunland Group Limited (“Sunland”). Sunland is an ASX listed ($290m market cap) residential property development group with over 30 years’ experience operating primarily in South-East Queensland, Sydney and Melbourne.
Over the past 7 years, Sunland has completed over 4,500 houses and apartments with a gross value of $2.7 billion and has a development pipeline of over 6,000 dwellings valued at $3.7 billion.
Sunland has strong cashflows and profitability (EBITDA of $47.3m in FY15) together with low gearing (debt/tangible assets of 22.4% in FY15)
For more information about Sunland please visit http://sunlandgroup.com.au/ or go to www.asx.com.au (ASX:SDG).
The offer
Sunland Capital Pty Ltd (ABN 29 102 420 691) to issue A$40,000,000 to A$50,000,000 of unsecured and unsubordinated notes, guaranteed by its parent Sunland Group Limited (ABN 65 063 429 532) ("Sunland") and certain subsidiaries of Sunland.
Sunland has announced to the ASX the issue of a five year, fixed rate, unsecured and unsubordinated note issue ("Notes") with a fixed interest rate of 7.55% per annum, payable semi-annually in arrear, available exclusively through FIIG Securities Limited ("FIIG"). Sunland is seeking to raise $40,000,000 to $50,000,000 for their property development projects and working capital purposes.
FIIG is the Sole Lead Arranger for this transaction and the Notes are available to wholesale clients only (pursuant to the Corporations Act 2001 (Cth)), with an initial minimum subscription of $50,000 and in increments of $1,000 thereafter.
Notes summary:
- The Notes have a five year term with interest paid semi-annually in arrears
- The Notes will pay a fixed rate of interest of 7.55% pa
- The Notes rank as unsecured and unsubordinated obligations of the Issuer and the Guarantors (including Sunland)
- Investors have a put option at 101% of the face value of the Notes upon a change of control of Sunland.
- The Issuer may call some or all of the Notes prior the Maturity at a premium to the Note face value as determined in the Preliminary Information Memorandum
- The senior secured lender receives a priority payment to the Notes only in the event of a default or wind up. All ongoing obligations for payment of interest and principal to the senior secured lender rank equally with the Notes. Non-payment of principal and interest to the senior lender will amount to an event of default of the Notes also
- The Notes benefit from a covenant package that has limits on Sunland’s ability to borrow in the future, as well as covenants present in the secured facility. The Notes are structured in line with similar bond issues in the global high yield market and provide key structural benefits for investors when compared to recent ASX listed corporate hybrid transactions
- The Notes are not listed on an exchange or rated by a ratings agency
The Notes are an attractive investment for wholesale clients looking to lock in a high fixed rate of return and/or are looking to diversify their fixed income exposure.
To apply contact your FIIG Representative or phone 1800 01 01 81.