Sharechat Logo

Wrightson Finance increases bond sale to $100m

Wednesday 19th November 2008

Text too small?
PGG Wrightson Finance, the rural financing unit of PGW Wrightson, increased its sale of 21-month bonds to $100 million from $75 million because of strong demand for the debt.

The sale, which is underwritten up to $75 million by manager Forsyth Barr, will pay back $20 million of existing debt and give the firm more diversified funding, according to Mark Darrow, director of financial services.

"There has been a strong expression of confidence in the company, which is very gratifying at a time when many other finance businesses are struggling," Darrow said today.

The bonds pay annual interest of 8.25% or 2.25% over the swap mid rate through until October 2010 and Wrightson retains the right to extend the maturity through to October 2011, in the event the Deposit Guarantee Scheme is extended by the same period.

The firm is currently seeking a credit rating through Standard & Poor's to meet the supervisory requirements of the central bank. It expects "to continue the profitable growth of its lending operations throughout New Zealand, based on the ongoing strength in the rural sector, out strong competitive position and continued support of investors," Darrow said.

Shares of PGG Wrightson were unchanged at $1.47.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report