Caltex Notes were issued in September 2012. They paid a floating rate of interest equivalent to 3 month BBSW + 425bps, had a first call date of 15 September 2017 and a final maturity date in 15 September 2037.
In a notice to the ASX, Caltex said it intends to redeem all of the Caltex Subordinated Notes on 15 September, 2017. The redemption will be funded out of existing bank debt facilities. Holders who are on the register on 7 September will receive $100 plus $1.5678 interest per note.
This announcement was expected and it had little effect on the notes’ yield. At the closing price of $101.19, the internal rate of return (IRR) was just under 4.0%.