Challenger Limited (ASX:CGF) has announced the offer of Challenger Capital Notes 4, seeking to raise $250 million. Challenger Capital Notes 4 are subordinated, unsecured, perpetual and mandatorily convertible into Challenger ordinary shares.
The offer also includes a reinvestment offer for eligible Challenger Capital Notes 2 holders.
Distributions are floating rate, discretionary, non-cumulative, and are expected to be fully franked. The margin will be determined by the bookbuild but is expected to be in the range of 3.60% to 3.80% above the BBSW rate. The closing date of the offer is 30 March, 2023. All applications must be submitted through a syndicate broker and eligibility requirements apply.
Challenger Capital Notes 4 are expected to be quoted on the ASX under the code CGFPD.
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The company says it intends to use the proceeds to fund a subscription for Additional Tier 1 Capital of Challenger Life Company Limited, and partly to refinance CCN2 holders.
CCN4 will be perpetual unless converted, redeemed or resold, with optional exchange dates starting in May 2029.
Meanwhile, Rio Tinto has announced it has priced US$650 million of 10-year fixed rate SEC-registered debt securities and US$1.1 billion of 30-year fixed rate SEC-registered debt securities. The bonds will be issued by Rio Tinto Finance (USA) plc and will be fully and unconditionally guaranteed by Rio Tinto plc and Rio Tinto Limited. The 10-year notes will pay a coupon of 5.000 per cent and will mature March 9, 2033 and the 30-year notes will pay a coupon of 5.125 per cent and will mature March 9, 2053.
