MEDIUM-TERM NOTES
Steinhoff’s early bond sale plan falls short
Steinhoff International’s plan to redeem R7.6bn of its rand-denominated bonds that trade on the JSE has fallen R500m short as holders of one block of notes voted against an early redemption resolution. On Wednesday the company announced that 99.65% of holders of 11 of the medium-term notes issued under the Steinhoff Services R15bn programme voted in favour of early redemption. The programme comprised 12 issues, of which maturities varied from April 2018 to November 2022. However, 54.55% of holders of the 12th issue, the SHS34 notes, voted against the early redemption resolution. Those notes had a maturity date of November 2022. Steinhoff initially informed shareholders in January that it was considering an early redemption. Analysts said the move was designed to release the company from restrictions on its ability to sell off attractive South African assets. The move is also expected to enable Steinhoff Africa Retail to issue its own bonds. The credit rating on Steinhoff’s bonds was...
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