Investment offer from TabCorp

“TabCorp's businesses are performing well,” said David Attenborough, Chief Executive Officer for the Melbourne-based firm. “The results for the half-year that ended on December 31 demonstrate the resilience of TabCorp's businesses and the company’s defensive earnings profile. Notes are a new investment opportunity and the offer will be open to retail investors including its Australian shareholders and holders of TabCorp Bonds. We expect that retail investors will find the interest rate of notes attractive. The offer will provide a number of benefits to TabCorp including funding diversification, increased funding flexibility and an extension of TabCorp’s debt maturity profile.”

TabCorp stated that investors must purchase a minimum of 50 notes and it has the right to redeem them as early as 2017 ‘or earlier in certain circumstances but is not obliged to do so’ while holders will be entitled to receive ‘a floating rate of interest paid quarterly in arrears subject to deferral’.

“The proceeds from the offer will be used for general corporate purposes including the repayment of existing financial indebtedness,” read a statement from TabCorp. “The offer forms part of TabCorp’s capital management strategy. Notes are expected to provide an amount of equity credit for TabCorp’s corporate credit rating.”