Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Tranz Rail to buy out Aratere lease


Tranz Rail to buy out Aratere lease

Auckland, New Zealand - Tranz Rail Holdings Limited [NZSX: TRH]

Tranz Rail Chairman Wayne Walden said today that he is pleased to announce that the board has decided to exercise the company's option to buy out its lease of the ship Aratere.

In May of this year the company secured an option to buy out the lease after negotiations with the United States based parties to the arrangement .The option had to be exercised by the end of this month.

Toll Finance (NZ) Limited has agreed to provide a facility of $77 million so the option can be taken up. The facility is subject to satisfaction of a number of conditions including formal consent of the Toll board. That consent is expected to be in place by the end of the day.

Mr Walden said, "The board are pleased to be in a position to exercise this option.

"We originally intended to use the proceeds of the issue of equity to the Crown to finance this but the deferral of that transaction meant that we had to seek alternative sources of funding.

"We are pleased that Toll has agreed to provide us with a loan to enable us to exercise this option. The terms of the facility are commercially based and more favourable for Tranz Rail than the current arrangements under the lease.

"The NZX have provided Tranz Rail with a waiver to enable this transaction to proceed. The details of that waiver will be released by the exchange shortly," said Mr Walden.

Tranz Rail will receive various benefits by exercising the option including reducing its foreign exchange risk, freeing up security and releasing a US$15.5m cash deposit currently held in the US.

The deal will settle on 30 September at which time Tranz Rail will take full ownership of the Aratere.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Official Cash Rate Unchanged At 1 Percent

The Monetary Policy Committee has decided to keep the Official Cash Rate (OCR) at 1.0 percent. Employment remains around its maximum sustainable level while inflation remains below the 2 percent target mid-point but within our target range... More>>

ALSO:

Food Prices: Avocados At Lowest Price In Almost Three Years

Avocados are at their cheapest average price since February 2017, with tomato, lettuce, and cucumber prices also falling, Stats NZ said today. More>>

Auckland Port Move: Cabinet Ministers Deliberate On Report

Cabinet ministers now have a copy of a report urging the government to move the Auckland port up north, but say no final decisions have been made. More>>

ALSO:

Toxicology Tests Planned: Dead Rats Washed Up On Beaches

As many as 600 rats washed up on Westport's North Beach over the weekend to the horror of locals. DOC said they may have been killed by a recent 1080 poison drop 140km away and washed down the Buller River after heavy rain battered the coast. More>>

ALSO: