Flagship Investments Limited (ASX: FSI) Convertible Note
Flagship Investments Limited (ASX: FSI) has launched a listed redeemable, unsecured convertible note issuance (ASX: FSIGA), seeking to raise up to AUD20 million.
- Total offer size of up to AUD20.0m
- Offer price of $2.70
- Interest rate: 5.50% paid quarterly until Step Up date of 30 September 2024
- After Step up date (3 years after issue) increases to 6.50%
- 1 Convertible Note converts to 1 ordinary share
- Maturity date of 1 October 2026 (5 years) (if not converted or redeemed earlier)
- Application will be made for quotation of the FSI Notes on ASX under ticker code: FSIGA.ASX
- Subject to shareholder approval, the Directors and Senior Management will acquire 25% of the issuance
- Loan-to-Value (LTV) cap of 50%. Cpn step-up of 2% and dividend stopper if breached
FSI currently does not have any prior ranking debt and has committed to not extend indebtedness beyond the $20 million raising. This provides Investors with relatively low-risk access to a 5.5-5.90% return with additional upside (underlying share price appreciation).
Chart 1. Key Offer Features
Source: Flagship Investments Prospectus Presentation
|NSCAU 4.95 24||NAOS Small Cap Opp Co||3/12/2024||100.5||4.78|
|MVTAU 4.8 26||Mercantile Investment Co||10/07/2026||100.52||4.89|
|FSIGA 5.50 26||Flagship Investments||1/10/2026||100.00||5.90|
|NACAU 5.5 27||NAOS ex-50 Opp Co Ltd||30/09/2027||107.001||4.61|
|NCCAUD 4.5 28||NAOS Emerg Opp Co Ltd||30/09/2028||102.41||4.77|
We are taking bids now. Please let me know if you have any interest.