The Centuria Capital Group (ASX: CNI) share price is treading lower after providing an update on the listed note offer. Here are the details.
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The Centuria Capital Group (ASX: CNI) share price is treading lower during early-afternoon trade. This comes after the real estate group provided an update on the listed note offer announced late last month.
At the time of writing, Centuria shares are down 0.36% to $2.76.
Completed note offer
Investors are sending the Centuria share price lower after digesting the group’s latest update.
According to its release, Centuria advised its wholly-owned subsidiary, Centuria Funds Management, has successfully completed its listed note offer. It is also a trustee of the Centuria Capital No. 2 Fund.
The group raised $198,693,00 before costs from securityholders for secured, redeemable notes. In total, 1,986,930 notes were allocated at a price of $100 each. Centuria stated that all valid applications were accepted in full.
Institutional investors, as well as syndicate brokers, had their distribution determined on 26 March 2021. This was following a $190 million bookbuild.
The interest rate for the first interest period is set at 4.29% per annum. This includes the bank bill rate of 0.04% and the margin of 4.25%. First interest payment will be $1.07 per note, to be paid on 20 July 2021 — a period of 91 days from first interest commencement (20 April 2021).
The proceeds of the offer will be put towards redeeming a series of wholesale notes that mature this month. In addition, the group will also redeem another set of wholesale notes that is due to mature in April 2023. The remaining funds will be used to support Centuria’s REIT co-investment program, acquisitions, and grow its unlisted property funds division.
About the Centuria share price
The Centuria share price has gained over 70% in the past 12 months. However, it is relatively flat year-to-date. The real estate group’s shares reached an all-time high of $2.91 earlier this week, before slightly dipping lower.
On valuation grounds, Centuria presides a market capitalisation of around $1.6 billion, with 600 million shares outstanding.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.