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Wrightson Finance bondholders approve 12-month extension

Thursday 12th August 2010

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PGG Wrightson Finance said bondholders have approved an amendment to its trust deed extending the term of its October 2010 bonds by 12 months. 

The finance company, a unit of rural services group PGG Wrightson, said almost 90% of bondholders voted in favour of the proposal. The vote required at least 75% support. Their support was required because of changes to the Crown Retail Deposit Guarantee Scheme.

The bonds, which are also covered by the extended guarantee, will continue to pay annual interest of 8.25%. Wrightson Finance has a BB credit rating with Standard & Poor's.

"The vote represents a firm endorsement by bondholders that a very attractive return for a Crown guaranteed security is a straight-forward and favourable proposal," chief executive Mark Darrow said.

"Having an on-going bond program is part of our diversified funding approach, which we will look to continue going forward."

Darrow said investors have remained loyal to its debenture programme this year, with record reinvestment rates over the past six months. The bondholder votes was delayed when the company failed to get a quorum last month.

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