Qube Holdings Notes (ASX code: QUBHA) began trading on a deferred delivery basis on the ASX this week. The first trade was at $101.30. The notes finished the day at $101.57, a small premium to their $100 face value. They have a maturity date of 5 October 2023 and an issue margin of 3.90% above BBSW (an initial yield around 6.50%). Normal trading is expected to begin on 10 October.
Since the issue was announced at the end of August, margins on ASX listed notes have risen with the median trading margin moving from 2.01% on the day of the announcement to 2.19% on the day before trading commenced. The diagram below shows how non-bank corporate notes have fared over that period and readers will see it has been a bit of a mixed bag.
Qube’s new issue initially sought to raise $200 million but demand was strong and the issue was upsized to $305 million. The first interest payment date is set for 5 January 2017 with the first payment amount an estimated $1.4203. The chart below shows how trading margins stood at the end of the first day’s trading.