Real estate company, Acorn Holdings, has issued a notice to all noteholders under its medium term note program to take advantage of its option for early compensation of outstanding notes.
According to the company, the medium term note program was worth Kshs5.7 billion.
However, the notes to be redeemed by the company are worth Kshs573 million.
“Acorn Project (Two) Limited Liability Partnership hereby gives notice to all noteholders under its Ksh 5.7 billion MTN program, to exercise its option for early redemption of a portion of outstanding notes issued under the program,” the public notice read, in part.
Notably, noteholders in a company are individuals or banks who have lent a company money in form of bonds or mortgages.
These bonds are bought through a brokerage firm, bank, bond trader, a broker or through and over-the-counter deal.
Moreover, this can be a very good method of investment due to its good returns.
Details of the Early Redemption to Noteholders
Further, the notice reveled that the early redemption would be take effect on or before January 5, 2024.
“The redemption will be effected on or before 5th January 2024 (“Early Redemption Date”). The total amount of the Notes to be redeemed is Kenya Shillings Five Hundred and Seventy-Three Million and Four Hundred Thousand Only (KES573,400,000) in relation to Project 2 (USIU 4, Linden Properties LLP),” Acorn Holdings noted.
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Additionally, it was good news for the noteholders who were urged to take advantage of the redemption program as the notes will be redeemed at an amount equal to the nominal value of the notes, together with accrued but unpaid interest.
The interest is from the preceding Interest Payment Date up to and including the Early Redemption Date, otherwise known as the early redemption amount.
“In connection with the early redemption, the notes will be delisted from the Fixed Income Securities Market Segment of the Nairobi Securities Exchange,” Acorn concluded.
About the Sale of the Qwetu Abedare Heights
Notably, this payment comes after the real estate company sold the Qwetu Aberdare Heights II, in a Ksh1.48 billion deal.
The Qwetu hostel boasts of a 630-bed hostel and is located next to the United States International University Africa (USIU) off Thika Road.
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Likewise, Qwetu is Acorn Holdings’ flagship purpose-built student accommodation brand that provides students with conducive environment, amenities, and services to enable comfortable living during their college and university years.
Consequently, Acorn disclosed that the Acorn Student Accommodation Development REIT (ASA D-REIT) had offloaded Qwetu Aberdare Heights to the Acorn Student Accommodation Income REIT (ASA I-REIT) in a deal expected to bring the total repayment on the green bond to Ksh3 billion ahead of its maturity in November 2024.
“Qwetu Aberdare Heights II raises the total asset value of the ASA I-Reit to Ksh10.5 billion,” a separate statement by Acorn read.
