Suncorp-Metway plans to price A$325 million of five-year convertible preferreds

By Rebecca Melvin

New York, May 6 - Australia's Suncorp-Metway Ltd. plans to price A$325 million of five-year mandatory convertible preference shares, at a par price of $100, according to a company release.

The preference shares qualify as non-innovative residual tier 1 capital and will form part of Suncorp Group's ongoing capital management strategy. There is a greenshoe of up to A$75 million.

Citi Global, JP Morgan, Macquarie and UBS are joint lead managers and joint bookrunners of the offering, which was set to open on May 16 and expected to close June 4.

The preferred dividends will be floating rate, quarterly, and non-cumulative.

Proceeds are earmarked for general corporate purposes, including financing asset growth and repaying existing debt.

Suncorp is a finance, insurance and banking group, headquartered in Brisbane, Queensland, Australia.

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