MENU

Cromwell Group announces €230 million bond issue

Cromwell Group (ASX: CMW) announced today a €230 million bond issue which matures in 2025. The bonds pay a fixed coupon rate of 2.5% per annum and are convertible into Cromwell stapled securities at a price of A$1.177 which is a 7.5% premium to Cromwell’s closing price of A$1.095 on 21 March 2018.

The proceeds from the convertible bond issue will be used to pay off existing debt with an earlier maturity date and effectively lengthen Cromwell’s weighted average debt maturity as part of its ongoing capital management strategy.

The Cromwell share price was down 1.64% in early morning trade today.

Cromwell, like Charter Hall Retail REIT (ASX: CQR) and other REITs, is attractive to income-seeking investors for its dividend yield which is currently at 7.6% according to Morningstar.

Whilst I like Cromwell, I think this share could be a much better choice for income-seekers over the next few years.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned.

You can follow Kevin on Twitter @KevinGandiya.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now