Great Southern digs up $55m 11/09/03 By: Jonathan Merridew
Great Southern Plantations (GTP) is set to spread its seed a little wider this year after announcing a $55 million issue of Transferable Reset Exchangeable Securities or ‘TREES’. The extra cash will be spent on acquiring more land for its managed investment scheme projects as well as funding infrastructure and the development of new products.
TREES are a perpetual, subordinated reset convertible note that may be converted into ordinary shares under certain events including a takeover or being wound up. They pay a fully franked coupon yield of the higher of 6% per annum or 0.5% above the 5 year swap rate at the issue date until the first reset date on 31 October 2008.
"TREES Holders will also participate in any increase in the Great Southern Ordinary Share price above $1.95 by virtue of a Minimum Conversion Number," explained the company.
No less than 500,000 TREES will be issued at $100 each under a fully underwritten offer with another 50,000 available under an oversubscription option.
Great Southern operates Eucalypt plantations in Western Australia, Victoria and Queensland and has net assets in excess of $188 million, and more than 41,000 hectares of Eucalypt trees under management. It recently posted a 140% increase in full year profit to $41.4 million for the year ending 30 June 2003 and declared a final dividend of 5c fully franked.
GTP Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
