Tabcorp Successfully Raises AU$250M

Wednesday 28 March, 2012 19:20

This SlideShowPro photo gallery requires the Flash Player plugin and a web browser with JavaScript enabled.

Tabcorp has successfully raised AU$250 million - AU$200 million of this was raised through the issue of new subordinated notes that are to be listed on the Australian Securities Exchange (ASX) and a further AU$50 million was raised from the issuing of notes to Tabcorp shareholders.

The AU$200 million were offered to institutional investors and brokers via the bookbuild process and the other AU$50 million to holders of Tabcorp ordinary shares and Tabcorp bonds, as well as other investors.

The share offer was announced last month and Tabcorp made a requirement for investors to purchase a minimum of 50 notes at a cost of AU$100 each. 2.5 million notes were issued and these will commence trading on the ASX under the code TAHHB. Tabcorp has revealed that the new funds will be used for 'general corporate purposes' such as the repayment of existing debts.

David Attenborough, Managing Director and Chief Executive Officer of Tabcorp stated, "We are pleased with the positive response to the offer."

"The offer attracted significant interest from new and existing investors."

The notes are unsecured, subordinated, cumulative notes that will mature on March 22, 2037, although they can be redeemed sooner than that. Interest will be calculated on a quarterly basis at a 4.00 percent per annum fixed margin over the 3 Month Bank Bill Rate and will be paid to investors quarterly.

Attenborough Pushes for Uniform Regulations

Attenborough has been pushing the Federal Government to implement a standardized regulatory approach to gambling, stating that the lack of uniformity and regulation is harming the industry and Tabcorp in particular. He stressed the differences in consumer protection between the different states and territories and looked at some of the different policies that have been implemented around the country.

Don't miss...

The Tabcorp CEO commented that "the consumer, particularly the one betting online, does not think state-based and can access any wagering operator through an account, regardless of which state they're in. They can easily side step any state's special rules with their iPhone."

"For a company like Tabcorp that operates nationally through licenses in a number of states this patchwork regulatory environment makes life cumbersome and acts as a drag on the business. A national or standardized approach would provide business with greater freedom to focus on innovation and creating value. It would allow business and government alike to be more productive."

Attenborough referred to Tabcorp's commitment to development citing their online wagering site that will soon be launched.

Featured Bonus

Currently in the News