Goodman group first issued $325 million of its Perpetual Listed Unsecured Securities (PLUS) in 2007. The securities paid BBSW + 190bps on the $100 face value until September 2012 when a restructure of the Goodman Group led to an amendment of the terms of the securities. The margin was increased to 390bps and the first “Remarketing” date was moved to 31 December 2017.
Goodman has now announced it will issue a Realisation Notice as per the product disclosure statement terms to repurchase all Goodman PLUS. Holders of PLUS registered on 25 September 2017 will receive the $100 face value plus $1.414027 per security for the last distribution period. These amounts will be paid on 2 October 2017.
It has been a rocky road for PLUS holders (see chart below). The securities were issued just as problems in the U.S mortgage market were starting to gain public attention. As these problems morphed into what is now known as the GFC, the price of PLUS tanked. However, as with most hybrids on issue at the time, the price recovered dramatically but holders would have had an eye-opening experience all the same.
