Wagering and gaming firm Tabcorp Holdings Ltd hopes to raise around $200 million via the issue of new subordinated notes to be listed on the Australian Securities Exchange.
They have an issue price of $100 per note and mature in 2037. Tabcorp has the right to redeem the notes in 2017 but is not obliged to do so.
The interest rate will be the sum of the three-month bank bill rate plus a margin.
The margin will be determined by a bookbuild and is expected to be in the range of four per cent to 4.5 per cent.
Therefore, Tabcorp said, the initial annual interest rate is expected to be about 8.4 to 8.9 per cent.
'The offer will provide a number of benefits to Tabcorp, including funding diversification, increased funding flexibility and an extension of Tabcorp's debt maturity profile,' Tabcorp chief executive David Attenborough said in a statement on Tuesday.
Tabcorp said the money raised would be used for general corporate purposes, including payment of existing debt.
The offer of the notes opens on February 22.
Shares in Tabcorp were 15 cents lower at $2.75 at 1059 AEDT on Tuesday.
