Australian Unity offers Australian Unity Notes

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Australian Unity, a national healthcare, financial services and retirement living organisation, is seeking to raise approximately $80 million through the issue of five year debt securities to be quoted on the Australian Securities Exchange (ASX).

Australian Unity, a national healthcare, financial services and retirement living organisation, is seeking to raise approximately $80 million through the issue of five year debt securities to be quoted on the Australian Securities Exchange (ASX).

The funds raised through the Australian Unity Notes will be used towards financing growth, repaying debt, and for general working capital and business purposes.

The offer is expected to open on 11 March 2011. The issue date of the offer is 14 April 2011 and the maturity date is 14 April 2016. The offer closes on 5 April 2011 for member and employee applicants; 7 April 2011 for general applicants; and 8 April 2011 for broker firm applicants.

Holders of Australian Unity Notes will be entitled to receive quarterly interest payments and repayment of the issue price at maturity on 14 April 2016, at which time Australian Unity must redeem all outstanding Australian Unity Notes. The interest rate will be a variable rate based on a three-month bank bill rate plus a fixed margin.

Australian Unity’s group managing director, Rohan Mead, said: “We’ve had good growth across our healthcare, financial services and retirement living businesses and we are pleased to be able to offer the opportunity for investors to be a part of our future. The Australian Unity Notes are an important part of Australian Unity’s strategy to raise capital in the market to fund planned growth.”

Australia Ratings has assigned the Notes a BBB+ long-term credit rating. Westpac Institutional Bank and Evans & Partners are the joint lead managers and joint book runners for Australian Unity Notes. Greenhill Caliburn is acting as financial adviser. Interested investors can call the Australian Unity Notes Information Line on 1800 209 118, 8:30 am to 5:30 pm (Melbourne time), Monday to Friday or read more at www.australianunity.com.au/australianunitynotes.

About Australian Unity: Australian Unity is a national healthcare, financial services and retirement living organisation providing services to approximately 560,000 Australians. It is a mutual company which currently has some 285,000 members, including approximately 10,000 members who have been with the organisation and its predecessors for more than 50 years. Australian Unity’s history as a trusted mutual organisation dates back 170 years. This history includes the provision of health, sickness and funeral benefits from 1840, aged care services from the 1880s, investment bonds from the early 1960s and asset management and personal financial services since the 1990s. In the financial year ended 30 June 2010, Australian Unity’s revenue was more than $930 million. It employs around 1,400 staff nationally.

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For more information please contact:
Abdi Noor (Head of Public Affairs and Communications) – 03 8682 6777

3 March 2011