A high income investment in Crown Limited
Wealth Focus has secured allocation to the Crown Limited Subordinated Notes 2 IPO. Investors looking to apply for a guaranteed allocation will need to contact us on 1300 55 98 69.
Allocations are still available on a first come first served basis.
Crown Limited Subordinated Notes II – A step up in recent margin
Although we are of the view, Crown’s margin of 4% over the 90 day BBSW (2.27% – 24/03/15) is not rewarding enough when the bank hybrids are typically trading at 3.5% over BBSW, the market says otherwise.
Crown Sub Notes, issued in September 2012 are now trading in line with the banks with a margin to maturity of 3.6% over BBSW. On a relative basis, this would indicate that Crown Sub Notes II, should trade at 3.9% over the BBSW and provides potential upside to investors participating in the IPO.
An almost identical issue to the Sep 2012 issue (primarily, the maturity date differs), Crown Subordinated Notes II is clearly going to be hot off the shelves as investors look to diversify from a hybrid portfolio pregnant in bank issues. It already sounds like this book will close early, and we suggest investors looking to invest, request an allocation sooner rather than later.
Call us on 1300 559 869 to ask us to secure your allocation.
- Broker firm offer – Our allocation through the broker firm offer means investors are guaranteed an allocation without waiting for the general offer.
- Limited Offer – The offer is to raise approximately $550 Million, with the ability to raise more or less. The Notes will be traded on the ASX
- Income – Crown Limited Subordinated Notes II provide holders with quarterly unfranked distributions.
- Un-franked Income – Investors often overlook that returns quoted on fixed income include the franking credits. Un-franked payments should be considered more attractive, avoiding the need to wait until the end of the tax year to claim back the franking.
- High level of income – The indicative distribution rate is 4%% over the 90 day Bank Bill Swap Rate (2.27% – 24/03/15) for an indicative rate of 6.27%pa.
- Minimum investment – $10,000 (this is a Wealth Focus minimum)
- Issue Price – $100
Find out more
If you would like further information on Crown Subordinated Notes II Offer, please use the links below:
- Fact sheet
- View our online webinar – An Introduction to Fixed Income
Please call us on 1300 559 869 to ask us to secure an allocation.
Wealth Focus Pty Ltd
What do we get paid?
Wealth Focus will receive a payment of up to 1% plus GST of the amount invested. This is paid by the product issuer and is NOT an additional charge to the investor.