BOQ Convertible Notes
Bank of Queensland Limited (“BOQ”) today announced that conditions for an Early Conversion Event for Tranche 3 ($45m) of its Lower Tier 2 Convertible Notes (“Convertible Notes”) had been met.
Conditions for an Early Conversion Event had been met because for the last 3 consecutive trading days, the BOQ closing share price has been below 65% of the volume weighted average sale price of shares for the 20 trading days immediately preceding 30 June 2010, being the date on which the Convertible Notes were issued. The noteholder may, at its option, serve a conversion notice in respect to all or some of its Notes to the Bank within 10 business days of the Early Conversion Event.
The holder of the Convertible Notes has issued a notice to BOQ stating that, based on existing circumstances, it has no current intention, with respect to all 3 tranches, to convert this financial instrument.
BOQ Managing Director David Liddy said this is a positive outcome for BOQ.
“We are pleased that, despite the recent volatility in the macro and local economy, our Convertible Notes holder has chosen to continue its significant investment in the Bank.”