Investing

Dexus Finance Pty Ltd

Real Estate

Dexus Finance Pty Ltd

Latest price

$ 110.24

  • ASX code
    YTMDX1
  • Maturity date
    05-Nov-2025
  • Capital structure
    Senior Unsecured
  • Coupon type
    FIXED
  • Coupon P.A
    4.75%
  • Issue Date
    05-Nov-2015
  • Next ex. distribution date
    26-Oct-2017
  • Next interest payment date
    05-Nov-2017
  • Payment frequency
    Semi-Annual

Issuer

Dexus Finance Pty Ltd

Guarantors

DEXUS Funds Management Limited as trustee or responsible entity of a number of trusts, and other group entities.   

Base Terms

DEXUS Securities Issuance Programme dated 31 August 2012    

Pricing Supplements

Dated on or about 5 November 2015, on or about 13 April 2016 and 17 January 2017.    

Nature of the Bonds

The bonds and guarantee will each be direct, unsubordinated and unsecured obligations of the Issuer and Guarantors, respectively, and will rank at least pari passu with all other unsubordinated and unsecured obligations of the Issuer and each Guarantor other than those mandatorily preferred by law.

Issue Size

A$ 185,000,000    

Interest Rate / Coupon Rate

4.75% per annum, payable semi-annually (in two coupons of 2.375%) in arrears on 5 May and 5 November in each year, including the Maturity Date.   

Issue Date

5 November 2015, 13 April 2016 and 19 January 2017    

Maturity Date

5 November 2025    

Bond Denomination

A$10,000

Repayment at Par on the Maturity Date

On the Maturity Date, bondholders are scheduled to receive the Face Value and the final payment of Interest    

Early Redemption by Issuer

  1. Yes, in certain circumstances, for tax reasons 
  2. Within 6 months of the Maturity Date at 100% plus any accrued interest 
  3. Prior to 6 months of the Maturity Date, on the payment of a Make-Whole Amount.   

Key Risks

The value of an investment in the bonds may fluctuate due to various factors, including investor perceptions, worldwide economic conditions, interest rates, debt market conditions and factors that may affect the Issuer’s financial performance. The following risks may also affect an investment in the bonds:

  • Liquidity risk: An active secondary market in respect of the bonds may never be established or may be illiquid and this would adversely affect the value at which an investor could sell the bonds
  • Interest rate risk: The value of fixed rate bonds may be adversely affected by movements in market interest rates
  • Structural risk: The Issuer has no material assets or sources of revenue except for claims against, and advances made to it by, other Group companies under intercompany loans and assets or liabilities under certain hedging arrangements
  • Legal risks relating to litigation and regulatory actions;
  • Default risk: if an event of default occurs under the bonds, or the Issuer fails to perform any obligation in relation to the bonds, such event or failure may impact on the value of an investment in the bonds, the transferability of the bonds and the ability of a holder to recover amounts due under the bonds.

Key Benefits

Key benefits include:

  • interest paid semi-annually in arrears;
  • interest paid as 100% cash;
  • interest is not deferrable nor are interest payments discretionary; 
  • rank equally with all other senior and unsecured creditors of the Issuer.    

Key benefits include

The Issuer must not incur or permit to exist any Encumbrance if to do so would result in a breach of the Priority Debt covenant (Priority Debt must not exceed 30% of Total Tangible Assets). Priority Debt means all financial indebtedness that is secured by an encumbrance, other than a permitted encumbrance. Total Tangible Assets means, at any time, the total assets minus the aggregate book value of all intangible assets.

Financial Covenants

(a) Gearing Ratio (Total Debt: Total Tangible Assets) not to be exceed 55%

(b) Interest Cover Ratio (EBITDA: DXS Group Interest) to be greater than 2.0 times

(c) Priority Debt does not exceed 30% of Total Tangible Assets

Events of Default

Events of Default include:

  • Failure to Pay: Applicable with a cure period of 5 Business Days;
  • Cross Default: Applicable with a Threshold Amount of US$ 50,000,000;
  • Non-compliance with Financial Covenants; Applicable;
  • Breach of Other Obligations: Applicable;
  • Obligations Unenforceable: Applicable;
  • Ceasing to be Trustee and Responsible Entity: any Guarantor Trustee ceases to be the Trustee or Responsible Entity of a Guarantor Trust unless it is replaced by another DEXUS group member.
  • Enforcement or Attachment: Applicable, Threshold Amount is US$ 50,000,000;
  • Cessation of Business: Applicable to the Issuer or any Guarantor;
  • Insolvency: Applicable; or
  • Guarantor Trusts: Events impacting on the Guarantor Trustee’s right of indemnity, resettlement of Trust Property or a Guarantor Trust terminates and the capital vests.

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