Insignia Financial (ASX:IFL) Declines NAB’s Early Redemption Request for Subordinated Loan Notes
Early Redemption Request
Insignia Financial (ASX:IFL) received a Holder Redemption Request from National Australia Bank to redeem $200 million of subordinated loan notes. The company has elected not to exercise this early repayment request.
Financial Implications
The subordinated loan notes, issued in May 2021, include an equity-linked component. By declining the redemption, the coupon rate increases from 1% to 4%, and an Additional Return Amount of $53.5 million is payable at maturity based on a VWAP of $4.50. Insignia Financial recognised a derivative financial liability of $37.7 million and a remaining $15.8 million fair value adjustment will impact profit & loss in the second half of 2025.
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