MARAC Finance Limited Bond Issue Allotment
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Pyne Gould Corporation Limited (PGC) | 9:23 am, Wednesday 23 July 2008 | PGC | 2.630 |
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MARAC Finance Limited Bond Issue Allotment
Pyne Gould Corporation's subsidiary MARAC Finance Limited today announced
that its secured bond issue had closed oversubscribed, raising
$104.185million.
MARAC's five-year Secured Bonds will be quoted on the NZDX on the 24th of
July under the ticker code "MAR010".
Attached is a copy of the MARAC Finance Limited release.
23 July 2008
For further information please contact:
Brian Jolliffe
Managing Director
Pyne Gould Corporation and MARAC Finance
Telephone 09 539 9702
Mobile 027 446 6066
MARAC Secured Bond offer closes oversubscribed in
challenging market conditions
23 July 2008
MARAC Finance Limited ("MARAC") is pleased to confirm that following strong
support from brokers, financial advisers and retail investors, its inaugural
offer of first ranking* secured bonds ("Secured Bonds") has closed
oversubscribed, raising $104.185 million.
The five-year fixed interest rate for the Secured Bonds was set on Monday the
21st of July at 10.50%.
MARAC's Managing Director Brian Jolliffe is delighted with the support for
the Offer, especially in the current market.
"The oversubscription of our Secured Bond offer is an endorsement of the
quality of MARAC. The broader market conditions during the offer period were
not favourable, with weakness in equity markets in New Zealand and overseas,
further deterioration in the New Zealand economy and some non diversified
property lending companies becoming distressed. Given these circumstances we
see raising more than our $100 million target through the Secured Bond as
being a strong vote of confidence in MARAC's business.
Proceeds raised by the Secured Bond offer will further enhance MARAC's
already healthy liquidity reserves, bringing total liquidity to over $250
million today."
The completion of the Secured Bond issue further broadens MARAC's funding
base, which already consists of committed bank facilities from five major
banks, the retail debenture programme and a securitisation programme.
Jolliffe added that "MARAC has an intimate understanding of asset finance
with a focus on quality. Investors recognise this quality which is reflected
by the success of the Secured Bond and their ongoing support of our debenture
programme.
MARAC lends to thousands of small to medium sized New Zealand businesses that
form the backbone of our country's economy and the proceeds from this offer
will assist MARAC to keep servicing this wide range of customers.
We would like to acknowledge Joint Lead Managers to the offer, Forsyth Barr
Limited ("Forsyth Barr") and ANZ National Bank Limited, and Forsyth Barr as
Arranger and Organising Participant. We would also like to recognise our
network of intermediaries and financial advisors in achieving this outcome,"
Jolliffe concluded.
The Secured Bonds have been rated BBB- (Stable) by Standard & Poor's, which
is consistent with MARAC's rating of BBB- (Stable), and is a rating that is
recognised by the international investment community as 'investment grade'.
MARAC's five-year Secured Bonds will be quoted on the NZDX on the 24th of
July under the ticker code "MAR010".
-Ends-
About MARAC Finance Limited
MARAC Finance Limited is a wholly New Zealand owned and operated finance
company that has been in business for more than 55 years, and today is one of
the largest and most successful finance companies in the country. The company
is owned by Pyne Gould Corporation Limited ("PGC"), a NZX listed company that
has a history stretching back more than 150 years. PGC does not guarantee the
Secured Bonds or retail debentures.
MARAC's lending is well spread, both geographically and over a wide range of
business sectors including commercial, consumer and property. MARAC has no
related party lending and does not lend overseas.
MARAC is funded through retail debentures, committed bank facilities from
five major New Zealand banks and a securitisation programme ensuring a
diverse funding base. The Secured Bond has added to this diversity.
MARAC has a BBB- (Stable) credit rating from Standard & Poor's. This rating
is recognised by the international investment community as 'investment
grade'.
An investment statement for MARAC's first ranking secured* debenture stock is
available upon request by calling 0800 26 27 22.
- Subject to permitted prior charges (currently none) and claims given
priority by legislation.
For further information contact:
Brian Jolliffe
Manager Director
MARAC Finance Limited
Email brian.jolliffe@marac.co.nz
DDI 09 539 9702
Mobile 027 4466 066
