| In July 2000, SKYCITY Entertainment Group Limited (Issuer) issued NZ$150 million (150 million x NZ$1) of unsecured, subordinated capital notes through a public offering in New Zealand.
The capital notes are listed on the New Zealand Stock Exchange (NZX) and trade under the code "SKC030". The capital notes are, in effect, a perpetual security, with some conditions (including coupon rate) able to be reset by the Issuer on election dates. The election dates are every five years with the next election date 15 May 2015. The first election date (15 May 2005) and second election date (17 May 2010) saw no change to the conditions except the coupon rate and the new election date. The capital notes pay a quarterly fixed rate coupon. The current coupon rate is 7.25% p.a. Prior to the election date, the Issuer must notify holders of the proportion of their capital notes it will redeem (if any) and, if applicable, the new conditions (including coupon rate). Holders must then choose either to retain some or all of the capital notes on the new conditions and/or convert to ordinary shares in the Issuer. The Issuer may then elect to redeem or purchase some or all of the capital notes that holders have chosen to convert. The capital notes do not carry voting rights. Capital note holders are not entitled to distributions in respect of the Issuers ordinary shares prior to conversion and do not participate in any change in value of the Issuer's ordinary shares. For further details please refer to the attached electronic copy of the terms and conditions of the capital notes. |
|
Capital Notes