NAB withdraws Capital Notes 4 offer
National Australia Bank (NAB) has withdrawn its NAB Capital Notes 4 offer thanks to tough market conditions likely to impact the trading value of the notes.
NAB said in an announcement to the Australian Securities Exchange (ASX) that market conditions had changed substantially since the offer was made under a prospectus dated 25 February 2020.
“NAB considers that the withdrawal of the offer is in the best interest of relevant stakeholders, including the large number of retail investors who had expressed interest in participating in the offer,” the announcement said.
“Other options, including potential repricing, were not considered appropriate in the absence of an orderly market.”
While NAB would refund application monies for the notes this did not include interest and refunds were expected to be despatched on 23 March, 2020.
NAB noted on 17 February, 2020, it announced that all NAB Capital Notes issued on 23 March, 2015, (NCN) would be purchased by a NAB nominated purchaser for $100 per note on 23 March, 2020.
The eligible NCN holders had the option to have their resale proceeds reinvested into the NAB Capital Notes 4. The withdrawal would not impact the resale and all NCN holders would receive $100 per NCN.
Nab said it intended to convert up to $750 million of NCN into ordinary hares and redeem the balance of the NCN, in the hands of the purchaser.
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