CBL Corporation Limited bond

CBL Corporation Limited, a NZ based insurance and reinsurance company, has launched an initial bond offer to raise up to $55m from wholesale investors. The offer closed oversubscribed one day after it opened. The bond pays a fixed rate of 8.25 per cent and has a final maturity of five years but can be called by the issuer after three or four years at $103.00 and $101.50 respectively. There is also an investor put at $101.00 in the event of a change of control. The new bond is expected to settle and commence trading in the secondary market around 17 April. FIIG is the Sole Lead Arranger and the bonds are available to wholesale investors only in minimum subscription amounts of $50,000. However, once trading commences the bonds can be transacted in $10,000 face value minimum parcels. CCL will use the proceeds to repay existing bank debt, improve capitalisation of CBL and the balance will be used for future growth opportunities.