| In October 2005, SKYCITY Investments Australia Limited (Issuer) issued through a public offer in Australia, A$150 million of unsecured, subordinated SKYCITY ACES (1.5 million x A$100), a perpetual reset exchangeable security.
SKYCITY ACES are listed on the Australian Stock Exchange (ASX) and trade under the code “SKAG”. The SKYCITY ACES are a perpetual security, with some terms (including coupon rate) able to be reset by the Issuer on reset dates. The reset dates are every five years from the first reset date of 15 December 2010. SKYCITY ACES pay a quarterly floating rate coupon calculated as (90 day Bank Bill + 2.25%)x(1-Corporate Tax Rate) p.a. These coupons are fully franked. At the reset date, the holder may request the exchange of some or all of the SKYCITY ACES (for SKYCITY Entertainment Group Limited (SKYCITY) ordinary shares) by providing an Exchange Request at least 35 business days before the reset date. On receipt of a valid Exchange Request, the Issuer must elect, at its option, to exchange for ordinary shares, redeem or resell the SKYCITY ACES. SKYCITY ACES do not carry voting rights in the Issuer or SKYCITY Entertainment Group Limited. Holders are not entitled to distributions in respect of the Issuers or SKYCITY ordinary shares prior to exchange. SKYCITY ACES do participate in a limited way in any change in value of the SKYCITY’s ordinary shares above certain predetermined thresholds. For further information please refer to the attached electronic copy of the terms and conditions of the SKYCITY ACES. |
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SKYCITY ACES