Turners’ convertible bond issue, which closed last week, was fully subscribed, with applications totalling $25.56 million.
The new bonds are expected to commence trading on the NZDX on October 3.
And as a result of additional demand for shares, the financial services firm is undertaking a capital raise of approximately $12 million. The funds being raised together with the $17.4 million of 2014 bonds, which converted into fully paid shares, will maintain acquisition headroom for the company as it continues its growth strategy.
The capital raise will be through a placement with a small number of significant New Zealand institutional investors, and some private investors, including interests associated with Andrew Bagnall. The placement price per share will be at the 2014 bond issue conversion price – a 5% discount to the 90-day volume weighted average price (VWAP) as at 30th September.
Allocation of the shares will be concluded by October 7.
“We are very pleased to see the new bond programme fully subscribed, which is a further sign of confidence from the market in the Turners business and strategy. We have seen a good mix in applications from retail and institutional investors,” says chief executive Todd Hunter.
“The full subscription for the 2016 convertible bond issue and the concurrent and unprompted demand for shares is a real positive for the Turners Limited business. The capital raise further strengthens our balance sheet with shareholder funds increasing by approximately $30 million – with total shareholder funds of $162 million.
Furthermore it maintains our ability to fund additional acquisition opportunities, which we are actively pursuing.”
