Macquarie Bank (ASX:MBL) has now opened its offer for Macquarie Bank Capital Notes 3 (BCN3). The offer is expected to close on Tuesday 24th August 2021.
BCN3 securities are perpetual, unsecured, convertible, non-cumulative and subordinated notes. BCN3 are mandatorily convertible to MGL ordinary shares on 8 September 2031. There is no fixed maturity date.
The size of the offer has been set at $500 million, though this could be more or less. The size when the issue was announced was expected to be $400 million.
Macquarie Capital Notes 3 Offer
MBL’s offer consists of:
- An institutional offer;
- A Broker firm offer;
- A Securityholder offer made to holders of MBL ordinary shares, and Macquarie Group Capital Notes 2, 3, 4 and 5 holders. Full details.
Macquarie Bank indicated the purpose of the transaction is to raise additional Tier 1 capital for MBL per Australian Prudential Regulation Authority requirements. The margin has been set at 2.90% per annum above the 90-day BBSW and distributions are expected to be franked at 40% – the same rate currently as Macquarie Group Limited ordinary shares.
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The ASX has confirmed that BCN3 will trade under the MBLPD ticker.
Distributions are scheduled to be paid quarterly in arrears, subject to certain payment conditions.
Macquarie Capital Notes MBLPD are expected to commence trading on the ASX on 30th August 2021.
