Goodman Fielder flags early redemption for $250 mln of NZ bonds

Thursday 2nd October 2014

Goodman Fielder, the food ingredients manufacturer facing a takeover from Wilmar International and First Pacific Co, will redeem $250 million of New Zealand-listed bonds early after negotiating a new banking facility with its lenders.

The Sydney-based company will pay $1.01 per bond plus accrued interest to redeem the New Zealand bonds on Oct. 24, it said in a statement. The notes, which pay annual interest of 7.54 percent, were set to mature on May 16, 2016, and last traded at a yield of 6.67 percent, or $102.378 per $100 face value, according to NZX data. Goodman will refinance the bonds using a $250 million three-year bank facility which matures in October 2017.

"We were pleased with the strong level of support from our banking partners in providing this new facility," managing director Chris Delaney said. "This refinancing has extended the maturity of our debt profile. Meanwhile, the refinancing will reduce our net interest expense in FY16."

Goodman is the target of Singapore-based commodities group Wilmar and Hong Kong-listed investment firm First Pacific, who have offered 67.5 Australian cents a share to take over the food ingredients maker via a scheme of arrangement. The offer has the blessing of the Goodman board, and last month the Australian Competition and Consumer Commission said it wouldn't oppose the deal.

The dual-listed shares of Goodman last traded at 68 cents on the NZX, and 62.5 Australian cents on the ASX.

BusinessDesk.co.nz

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