Published 11 June 2008
Pyne Gould Corp Ltd’s finance subsidiary, Marac Finance Ltd, said on Monday it intended to make a public offer of $100 million of first-ranking 5-year fixed-rate secured bonds, with up to $25 million more in oversubscriptions.
The offer will be underwritten up to $100 million by Forsyth Barr Ltd & ANZ National Bank Ltd.
Marac had already increased its banking lines in March, by $80 million to $480 million through a banking syndication, and said it now holds more than $140 million of cash & undrawn funding lines. The managing director of Pyne Gould & Marac, Brian Jolliffe, said Marac’s retail-funded secured debenture programme remained at around $560 million and that reinvestment rates were within the normal 65-75% range. “An increased level of new funds inflows has been noted, with new fund inflows for May at the highest levels since June 2007.”Mr Jolliffe said asset growth had slowed in the second half of the financial year, but Marac’s asset quality remained strong and instalment arrears remained at normal levels, about 0.5% of receivables. He said the directors were confident Marac would improve on the net profit after tax of $24.7 million achieved in the June 2007 year.
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Attribution: Company statement, story written by Bob Dey for this website.