Corporate Action: Small Equity Raise to Help Fund Qube's Growth; Take Up Entitlements

Director - Research, Consulting and Advisory, BondAdviser

Nicholas Yaxley

Director - Research, Consulting and Advisory

Australian bonds & fixed income research

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Credit

On the 30th of August 2016, Qube Holdings Limited (ASX Code: QUB) announced a new issue, Qube Subordinated Notes (Prospective ASX Code: QUBHA). The notes are expected to be issued on the 5th of October 2016. The size of the offer is indicated at $200 million but will change based on demand. The notes are part of the issuer’s ongoing funding strategy and will be used for general corporate purposes including the development of the Moorebank project. The proceeds will also be used for other growth initiatives.The securities are structured as unsecured and subordinated notes. Interest payments cannot be deferred otherwise this will constitute an event of default. Qube has appointed a trustee who holds the right to act on behalf of securityholders to enforce any obligations of Qube under the terms and trust deed.The notes pay a floating interest rate of 90-Day BBSW plus a margin (to be set at bookbuild but guided at 3.90 - 4.10% p.a.) payable quarterly in arrears on the 5th of October, January, April and July until maturity (5 October 2023). There is no optional call date but QUB may redeem the notes at any time if a change of control event, clean-up event or tax event occurs (see prospectus for more detail). Noteholders only have the right to early redemption in a Change of Control event.

On the 30th of August 2016, Qube Holdings Limited (ASX Code: QUB) announced a new issue, Qube Subordinated Notes (Prospective ASX Code: QUBHA). The notes are expected to be issued on the 5th of October 2016. The size of the offer is indicated at $200 million but will change based on demand. The notes are part of the issuer’s ongoing funding strategy and will be used for general corporate purposes including the development of the Moorebank project. The proceeds will also be used for other growth initiatives.The securities are structured as unsecured and subordinated notes. Interest payments cannot be deferred otherwise this will constitute an event of default. Qube has appointed a trustee who holds the right to act on behalf of securityholders to enforce any obligations of Qube under the terms and trust deed.The notes pay a floating interest rate of 90-Day BBSW plus a margin (to be set at bookbuild but guided at 3.90 - 4.10% p.a.) payable quarterly in arrears on the 5th of October, January, April and July until maturity (5 October 2023). There is no optional call date but QUB may redeem the notes at any time if a change of control event, clean-up event or tax event occurs (see prospectus for more detail). Noteholders only have the right to early redemption in a Change of Control event.

Qube Holdings

New Issue: Qube Subordinated Notes