Oceania Healthcare has set the indicative margin for its up to NZ$125m (US$82m) deal at 2.00% to 2.20%.
New Zealand’s third-largest residential aged care provider is looking to sell up to NZ$75m, with the ability to accept up to an additional NZ$50m in oversubscriptions, of seven-year secured fixed-rate bonds.
Given the demand for healthcare debt, it is unlikely that the oversubscription will not be exercised.
According to the term sheet seen by HMi, proceeds will be used to repay a portion of Oceania Healthcare’s existing bank debt, providing the group with diversity of funding and tenor, and help facilitate further growth.
Bookbuilding closes tomorrow, 9 October.
In mid-September, Summerset Group, New Zealand’s second-largest listed retirement village operator, priced its upsized NZ$150m seven-year retail bonds at 2.3% which is 10 basis points wider than the wide end of Oceania guidance.
Towards the end of July, Oceania posted disappointing full-year figures as a result of the Covid-19 pandemic. For the year to the end of May it reported a loss of NZ$13.6m mostly because of a drop in the value of its properties.
Oceania Healthcare has appointed Westpac as arranger, and Westpac, ANZ, Craigs Investment Partners and Jarden Securities as joint lead managers.
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