Rates Round Up
Dorchester gives debenture holders a Christmas present; Hawk announces takeover plan for Cynotech Holdings; Deposit takers keep switching rates after mid-week flurry.
Monday, December 21st 2009, 10:27AM
Dorchester gives debenture holders a Christmas present
Dorchester Pacific's finance unit will make an early payment to debenture holders under its deferred repayment plan - just in time for Christmas. The $12.3 million payment to some 7,200 investors takes the total repayments to 42.5% of the original $168 million.
Debenture holders were going to receive their fifth payment on December 31, but will now get the 7.5% payment on December 22.
The company also plans to send out details of its proposal to lift Dorchester Finance out of its moratorium arrangement by next June in a deal that would give debenture holders a 50% repayment, ownership and control of the company's hotels along with the proceeds of any sale with operating returns, and a three-year interest bearing note.
Hawk announces takeover plan for Cynotech Holdings
Allan Hawkins' Cynotech Securities has made an offer to takeover Cynotech Holdings, the minnow finance company that snapped up parts of the Western Bay Finance and National Finance loan books last year. It will offer preference shares in CSGL paying 8% annual interest. The offer also allows investors to cash up their investment funds at 13.5 cents per share without incurring brokerage charges.
Cynotech Holdings was last traded at 11.5 cents. If the deal goes ahead, Hawkins will pull the company from the stock exchange though its bonds listed on the NZDX will remain on the bourse.
Deposit takers keep switching rates after mid-week flurry
The war for deposits continued into Christmas after the midweek flurry by Rabo and BNZ.
ASB boosted its nine-month term by 10 points while slashing 20 points from its six-month term, 15 points from its 12-month term, 10 points from its two- and four-year terms and 25 points from its five-year terms. Westpac staked out the 12-month space, lifting its rate by 70 points, while ANZ National Bank cut 20 points from its five-month terms for $10,000 deposits, and boosted its offer for $5,000 deposits in longer-dated terms. It lifted its 12-month term 20 points, its 18-month term by 30 points, and its two-, three-, and four-year terms by 25 points.
Rabo undid its reductions from the week prior, boosting its two-, three-, four- and five-year terms 30, 20, 15 and 10 basis points respectively. The bank also lifted its six-month deposit rate by 5 points and its 12-month offer by 25 points.
BNZ cut 5 points from its 12-month offer on deposits of $50,000 or more, 10 points from deposits of $10,000. On the smaller funding bracket, it bolstered its offer 15 points for 18-month terms, 25 points for two-year through four-year terms and sliced 10 points from its five-year offering. Its bonds mirrored this movement in the 18-month through five-year space, though it added 10 points on the 12-month terms.
Marac looked for the big investors, boosting its nine-month through two-year offers for $50,000 deposits by 10 points, while cutting its $1,000 three-month deposits by 25 points. It boosted its $1,000 six-month terms by 75 points.
Public Trust upped its three-month and six-month through two-year terms by 20 basis points, while CU North increased its two- and nine-month terms by 50 points and its 12-month term by 25 points.
SBS cut its three-month term by 75 points and raised its five- and six-month terms by 35 points.
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