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On 16 September 2005, Australand ASSETS Trust issued 2,750,000 Australand Subordinated Step-Up Exchangeable Trust Securities (ASSETS) at an issue proce of $100 each, partly paid to $65 per ASSETS with a final instralment of $35 per ASSETS which was paid on 31 March 2006.
ASSETS were issued raising a total of $275 million on a fully paid basis. ASSETS were issued by Australand Property Limited as the responsible entity of Australand ASSETS Trust. Part of the proceeds of the ASSETS issue was used to fund Australand’s merger with Australand Wholesale Property Trust No.4 and Australand Wholesale Property Trust No.5 in October 2005.
A copy of the ASSETS Product Disclosure Statement can viewed by clicking here.
ASSETS have the following key investment features
Issuer
- ASSETS have been issued by Australand Property Limited (ABN 90 105 462 137; AFSL No. 231130) as the responsible entity of Australand ASSETS Trust (ARSN 115 338 513).
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Distributions
- ASSETS pay floating rate, quarterly, non-cumulative distributions, subject to Australand ASSETS Trust having sufficient income.
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- The Distribution Rate (until the first step-up date (1 October 2008) will be the sum of the Market Rate (the three month Bank Bill Swap Reference Rate on the first business day of the relevant Distribution Period)) plus the Margin of 2.30% per annum.
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Subordinated Guarantee
- Holders have the benefit of a direct, unsecured and subordinated guarantee from the Australand Group Entities that ranks ahead of Australand stapled security holders but behind Senior Creditors for all amounts which are due and payable.
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Restrictions on distributions
- Distributions may not be made to holders of Australand Holdings Limited securities or holders of Ordinary Units in Australand ASSETS Trust where an ASSETS Distribution Payment has not paid in full.
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- If any distribution of income or capital is made on any other security of a listed trust forming part of the Australand group, all previously unpaid ASSETS Distribution Payments (capped at 12 months of unpaid ASSETS distributions) are payable by the Issuer.
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- These restrictions and obligations are lifted if unpaid distributions (capped at 12 months of unpaid distributions) are paid in full.
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Redeemable/Exchangeable
- ASSETS are perpetual subject to the Issuer’s ability to Redeem or Exchange ASSETS in certain circumstances.
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- Holders may only initiate Redemption in limited circumstances.
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Reset of Terms
- The Issuer may initiate a Re-marketing Process at a Step-up Date, the first being 1 October 2008.
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- Through the Re-marketing Process, Holders may participate in the setting of a New Margin to apply from the Step-up Date.
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- At the time of a Re-marketing Process, the Issuer will also inform Holders of any reset terms, for example, the timing and frequency of distributions and the Exchange Discount.
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- If a New Margin is not set, the Margin on any ASSETS which are not Redeemed or Exchanged will be increased by the Step-up Percentage of 2.50%.
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Quoted on ASX
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ASSETS are quoted on the ASX under the code “AAZPB”. |
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