CVC Launches $50M Notes Offer with Reinvestment Incentives

CVC’s Strategic Capital Raise

CVC Limited has launched a significant capital raising initiative through the issuance of 500,000 redeemable, unsecured, non-convertible notes, collectively termed CVC Notes 3. Valued at $50 million, this offer aims to bolster the company’s funding base while providing existing and new investors with a structured income opportunity.

Dual Offer Structure – Reinvestment and New Money

The offer is split into two components. The Reinvestment Offer invites eligible holders of CVC’s existing CVCHA notes to exchange their holdings for the new CVC Notes 3 on a one-for-one basis, supplemented by a $2.00 cash payment per note plus accrued interest. This approach encourages loyalty and retention among current investors while refreshing the company’s debt profile.

Simultaneously, the New Money Offer opens the door for fresh capital from broker clients who meet eligibility criteria, including receiving personal financial advice or qualifying as institutional investors. This dual approach balances investor continuity with capital expansion.

Attractive Terms with Market-Linked Returns

CVC Notes 3 will pay quarterly floating interest, with a margin expected between 4.50% and 4.75% above the 3-month Bank Bill Swap Rate (BBSW). This floating rate structure offers investors a degree of protection against interest rate fluctuations, while the notes’ maturity is set for 11 December 2028, providing a medium-term investment horizon.

Importantly, these notes are unsecured and rank behind secured creditors but ahead of ordinary shareholders, positioning them as a hybrid debt instrument within CVC’s capital structure. The expected ASX listing under the ticker CVCHB will provide liquidity and transparency for noteholders.

Investor Eligibility and Application Process

Applications are strictly through brokers, with eligibility limited to Australian residents aged 18 or over, excluding US persons or nominees. Retail investors must fall within a defined target market and have received personal financial advice, ensuring the offer aligns with regulatory product design and distribution obligations.

The offer timeline is well-defined, with the bookbuild process determining the final margin by 19 November 2025, the offer opening on 20 November, and closing on 3 December. Settlement and issue dates follow shortly after, with trading expected to commence on 12 December 2025.

Implications for CVC and Investors

This capital raise reflects CVC’s ongoing strategy to manage its debt maturity profile and maintain financial flexibility. For investors, the notes offer a structured income stream with a credit risk profile positioned between secured debt and equity. The reinvestment incentive may also smooth the transition from older notes, reducing refinancing risk.

Market participants will be watching closely for the final margin set by the bookbuild, which will signal investor appetite and perceived credit risk. The success of this offer could influence CVC’s cost of capital and its ability to pursue future growth initiatives.