Hellaby Holdings announces Capital Notes offer
Hellaby Holdings announces Capital Notes offer of up to $50 million
Hellaby Holdings Limited (“Hellaby”) is offering investors an opportunity to participate in an offer of up to $50 million of Capital Notes to provide funds for the continued growth of one of New Zealand’s leading diversified groups in the automotive, industrial and retail sectors.
The Capital Notes offered are unsecured, subordinated fixed interest debt obligations of Hellaby, and will provide investors with an attractive fixed interest rate of 8.50% per annum. These obligations are guaranteed on an unsecured, subordinated basis by the guaranteeing subsidiaries, which comprise ten businesses in Hellaby’s portfolio. The Capital Notes have a term of approximately five years, with a Maturity Date of 15 June 2011. The minimum application value is set at $5,000. A $5 million priority pool has been reserved for existing Hellaby shareholders. The offer opens Wednesday 24 May.
Managing Director David Houldsworth said the proceeds would initially be used to reduce company debt and over time fund future growth. “Hellaby makes selective investments in businesses that it believes will have the capacity to deliver significant returns to shareholders,” he said. Over the past five years to 31 March 2006, Hellaby generated a total shareholder return of 28.2% per annum, while the NZX 50 Index returned 14.7% per annum in the same period.
Recent purchases made by Hellaby Holdings include TRS Tyre & Wheel (New Zealand’s leading supplier of agricultural and industrial tyres and wheels), Elldex Packaging (a leading New Zealand plastics packaging company), No1 Shoe Warehouse (a leading discount shoe retailer) and the BBQ Factory (an outdoor living and home heating retail company).
“As a result of its consistent investment approach, Hellaby has developed a substantial investment portfolio with leading market positions and strong brands,” Mr Houldsworth said. “This capital raising represents an opportunity to further implement this strategy and continue to deliver shareholder returns through acquisitions and organic growth,” he said.
Investors can request a copy of the Hellaby Investment Statement and Prospectus by contacting lead manager Westpac Institutional Bank (0800 HELLABY or 0800 435 522) or co-lead manager Forsyth Barr Limited (0800 367 227).
Application has been made to New Zealand Exchange Limited (“NZX”) for permission to list the Capital Notes on the NZDX market and all the requirements of NZX relating thereto that can be complied with on or before the distribution of this release have been duly complied with. However, NZX accepts no responsibility for any statement in this release.
About Hellaby Holdings Limited
Hellaby Holdings Limited is an NZSX listed company with a diversified range of strategic interests in a number of New Zealand and Australian automotive, industrial, retail, manufacturing and distribution companies. As at 1 May 2006, Hellaby Holdings had a market capitalisation of approximately $223 million, and was ranked number 36th on the NZX 50 market. Hellaby and its subsidiaries employ approximately 1,900 people throughout approximately 250 branches in New Zealand and Australia. Key businesses include:
- Brake and Transmission (importer and
distributor of automotive replacement parts)
- No1 Shoe Warehouse (New Zealand’s leading specialist discount shoe retailer)
- TRS Tyre and Wheel (a leading market supplier of agricultural tyres and wheels,)
- AB Equipment (one of New Zealand’s largest suppliers of materials handling and construction equipment)
- AB Rental (New Zealand’s largest forklift rental company)
- Eurolift (importer and distributor of specialist forklift trucks and mini-excavators)
- Diesel Distributors (importer and distributor of diesel engine products)
- Hannahs (New Zealand’s longest established and largest specialist footwear retail chain)
- BBQ Factory (outdoor living and home heating retail company)
- Elldex Packaging (manufacturer of plastic packaging material for food and retail sectors)
Levana Textiles (manufacturer of high quality, branded textiles in New Zealand and Australia)