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Property For Industry seeks up to $100 million through new bond offer

Friday 27th October 2017

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Property For Industry wants to raise $100 million through a new bond offer to institutional and New Zealand investors in order to repay existing bank debt. 

The Auckland-based company is offering up to $75 million of senior secured fixed rate bonds with oversubscriptions of up to $25 million, it said. The bonds are expected to have a term to maturity of seven years and it expects to provide full details of the offer next week. The company didn't offer an indicative rate, with the seven-year swap rate recently at 2.95 percent. 

PFI appointed Forsyth Barr as arranger, and Bank of New Zealand and Deutsche Craigs, together with Forsyth Barr, as joint lead managers in relation to the offer.

Companies have turned to the NZX debt market as low interest rates make for an attractive funding option. According to the stock market operator, the number of listed debt securities rose 9.4 percent to 116 on the year in October. 

Earlier this month, PFI announced it had bought nine properties for $69.5 million to extend the average lease term of its existing portfolio and acquire development opportunities in the future, and will pay for the deal through a discounted rights issue that closes on Nov. 1. 

PFI’s portfolio of 92 properties located in Auckland, Hamilton, Mount Maunganui, New Plymouth, Napier, Wellington, Nelson, Blenheim and Christchurch is leased to 148 tenants.

Its shares recently traded up 0.9 percent to $1.625. 


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