Wagering and gaming firm Tabcorp Holdings is returning to the bond market to raise about $200 million to help pay off existing debt.

Tabcorp on Tuesday said it will issue new subordinated notes to be listed on the Australian Securities Exchange (ASX).

They have an issue price of $100 per note and mature in 2037.

Tabcorp has the right to redeem the notes in 2017 but is not obliged to do so.

The interest rate will be the sum of the three-month bank bill rate plus a margin.

The margin will be determined by a bookbuild and is expected to be in the range of four per cent to 4.5 per cent.

Tabcorp expects the initial annual interest rate to be about 8.4 to 8.9 per cent.

“The offer will provide a number of benefits to Tabcorp, including funding diversification, increased funding flexibility and an extension of Tabcorp’s debt maturity profile,” chief executive David Attenborough said in a statement.

Tabcorp said the money raised would be used for general corporate purposes, including payment of existing debt.

The offer of the notes opens on February 22.

In April 2009, Tabcorp raised $284 million from its issue of Tabcorp Bonds – priced at $100 each – which are also listed on the ASX.

In June 2009, Tabcorp undertook a $150 million note issue, bringing the total raised in the domestic bond market in 2009 to $434 million.

Shares in Tabcorp closed 15 cents lower at $2.75.