The Step-up Margin of 4.05% is the aggregate of the Step-Up Percentage (2.00%) and the original Margin (2.05%). The initial Market Rate will be determined by the One Year Swap Rate prevailing on the Step-up Date. In accordance with clause 1.2 of the Prospectus, it is the intention that Dividends will continue to be fully imputed. On each succeeding anniversary of the Step-Up Date the Market Rate will be adjusted to reflect the One Year Swap Rate prevailing on 15 June of each year with the Step-up Margin remaining unchanged.
The Market Rate set mechanism, which is established in accordance with the Prospectus, is the average of the bid and ask rates for the One Year Swap Rate displayed at or about 11am (NZ time) on 15 June on the Reuters page (“FISSWAP”).
With effect from 14 May 2012, ROADS will be quoted on a “price traded” basis rather than the current “yield traded” basis as is consistent with market practice pursuant to the forthcoming Step-up. As a consequence, the NZX Ticker code will be changed from “WKS010” to “WKSHA” from this date. The number of ROADS held by holders will not change as a result of this.
Holders are not required to undertake any action.
Should you require any further information regarding the above please refer to the Prospectus, your financial or professional advisor or your nominated NZX firm.
Downer EDI Limited (www.downergroup.com) provides comprehensive engineering and infrastructure management services to the public and private Minerals & Metals, Oil & Gas, Power, Transport Infrastructure, Communications, Water and Property sectors across Australia, New Zealand and the Asia Pacific region.