Wrightson Finance to raise up to $75m in bond sale

The bonds will refinance some $20 million of existing debt that matures and helps the firm keep its financing diversified, according to Mark Darrow, director of financial services.

They will pay annual interest of 8.25% or 2.25% over the swap mid rate through until October 2010, the firm said in a statement. The company retains the right to extend the maturity through to October 2011, in the event the Deposit Guarantee Scheme is extending by the same period.

The sale is for up to $50 million of the bonds with capacity for $25 million of oversubscriptions. The sale is being managed by Forsyth Barr.

Wrightson Finance separately today said it was approved for the guarantee scheme. It is currently seeking a credit rating through Standard & Poor’s to meet the supervisory requirements of the central bank.

Shares of PGG Wrightson fell 5.1% to $1.50 today and have declined 30% this year, about matching the NZX 50 Index.