Bonds to pay 9.25% on New Bond Offer
St Laurence Property & Finance Bonds to pay 9.25% on New Bond Offer
St Laurence Property & Finance Limited (SLP&F) has announced that its $25 million Bond Offer opens today.
The offer is open until 31 March 2006, although SLP&F may elect to bring forward or extend the closing date. The Bonds will pay a fixed interest rate of 9.25% and have a maturity date of 15 May 2011.
“The Bond Offer is part of our ongoing funding programme with the proceeds to be applied primarily to fund the Group’s property investment activities,” said John Mallon, chief executive of St Laurence Property & Finance Limited.
This Bond Offer follows a successful $30 million Bond issue undertaken by St Laurence Property & Finance Limited earlier in the year. “We have decided to go back to the bond market to take advantage of market opportunities and to meet the current demand for investment product.”
The Bonds have a minimum principal investment of $5,000 and, thereafter, multiples of $1,000. Interest will be paid quarterly.
Application has been made to NZX for permission to list the Bonds on the NZDX. All of the requirements of NZX relating to the application that can be complied with on or before the date of this news release have been duly fulfilled. However, NZX accepts no responsibility for any statement in this news release.
SLP&F expects the Bonds to be quoted and traded on the NZDX during February 2006. The $30 million SLP&F Bonds issued earlier this year were listed on the NZDX on 4 July 2005.
The Bonds are secured on a first ranking basis in respect of assets which are not subject to prior charges and otherwise rank behind prior charges. Investors in the Bonds will rank alongside the company’s existing bondholders and debenture stock holders.
SLP&F has reserved the right to accept over-subscriptions of up to a further $25 million.
First NZ Capital has been appointed as Lead Manager and Organising Participant for the Bond Offer and is also underwriting the Offer for $20 million.
SLP&F is a well established, substantial entity holding a portfolio of property based assets. The company has recently announced the purchase of HP House, Quay Street Auckland for $24.75 million, and also the sale of its shareholding in Elrond Group Holdings Limited, its aged care investment, for $16.5 million, producing an overall profit on the sale of its shareholding of in excess of $15 million, with $11.7 million of this to be recognised in the current financial year.