Page 108 - SAR141018_Forterra AR 2013

FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
106
11 DEBT SECURITIES (CONTINUED)
Forum convertible bonds (Continued)
The Forum CB bears cash interest on the outstanding principal amount of the bond at the rate
of 6.0% per annum. The principal amount of the bond plus an additional amount necessary to
result in a yield of 16.75% per annum, compounded semi-annually (less all cash interest paid),
shall be payable upon redemption on 17 September 2014.
Trio convertible notes
On 1 April 2011, the Trust issued four tranches of convertible notes (“Trio CB”) with a notional
amount of RMB7.0 million each and a fifth tranche with a notional amount of RMB8.0 million to
finance the Group’s acquisition of Central Park Mall. The aggregate notional amount of the Trio
CB is RMB36.0 million, equivalent to approximately $6.9 million at the date of issuance. The five
tranches of convertible notes have the same interest rate of 6% per annum.
Trio CB was terminated on 29 August 2013 pursuant to the restructuring of the original acquisition
arrangements with the former owner of Central Park Mall (see Note 19).
The details of debt securities are set out as follows:
Aggregate
principal
amount and
accreted
interest
outstanding*
Convertible
bond reserve
(in
unitholders’
funds)
Derivative
financial
liability
Finance
costs
Conversion
Price
$’000 $’000 $’000 $’000 $
2013
Forum CB 79,470 2,641 – 12,906 2.10
Trio CB – – – 286 n/a
79,470 2,641 – 13,192
2012
Forum CB 69,375 2,337 – 11,455 2.10
Trio CB 5,790 – 54 482 2.80
75,165 2,337 54 11,937
* net of unamortised transaction costs.