On 23 March 2017, Villa World Limited (Villa World), announced the launch of its new unsecured and unsubordinated debt securities offer: Villa World Bonds.

This is Australia’s third simple corporate bonds issue after Australian Unity issued $250 million in bonds in November 2015 and Peet issued $100 million in bonds June last year.

Through the offer of the Villa World Bonds, the organisation will raise $50 million. The funds raised will allow Villa World to diversify its corporate capital structure and achieve growth objectives.

Villa World is the third company to issue a simple corporate bond in Australia. The margin on the new, five-year floating-rate simple corporate bond will be determined following a bookbuild process on 29 March 2017 and is expected to be in the range of 4.75-5.00 per cent. The offer also comprises a broker firm offer, which will close on 20 April 2017, ahead of the issue date of 21 April 2017. ANZ is the arranger, and ANZ, Morgans and Evans and Partners are joint lead managers.

Australian Executor Trustees Limited (AET) was appointed the trustee of the Villa World Bond Trust.

Under the Corporations Act there is a requirement to appoint a trustee to act on behalf of holders of simple corporate bonds. We have a considerable amount of experience in acting as trustee for debt securities, including acting for bond note holders in default scenarios.

Our services include:

  • holding security on behalf of note holders
  • negotiating and executing transaction documents
  • attending meetings of note holders
  • reviewing specific reports issued by the Issuer (as per the Corporations Act).

We were pleased to be able to assist Villa World in achieving its goals. To find out how we help you, please contact us.