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

 

APN abandons US$250 mln 'junk bond' sale as investors baulk

APN abandons US$250 mln 'junk bond' sale as investors baulk at terms

By Paul McBeth

Sept. 11 (BusinessDesk) - APN News & Media, the Australasian media group looking at spinning out its New Zealand unit, has dumped plans to raise US$250 million in a note offering from US investors and is looking at others ways to improve its financial flexibility.

The Sydney-based company won't go ahead with a senior unsecured note offer to sophisticated US investors despite attracting significant interest, it said in a statement. APN planned to use to repay debt, diversify funding lines, and extending debt maturities.

APN was assigned a sub-investment, or junk grade rating by the major three rating agencies after announcing the offer. Standard & Poor's assigned APN a BB rating with stable outlook, Moody's Investors Service a Ba2 with negative outlook, and Fitch Ratings a BB- on a stable outlook.

"While APN received significant investor interest in the proposed offering, this interest did not ultimately result in terms and conditions satisfactory to the company," the company said. "APN will continue to explore capital market opportunities that enhance the flexibility achieved in the recent refinancing."

The media group had already refinanced a new A$630 million banking facility in August, and plans an early redemption of $100 million of NZX-listed bonds this month. APN's next major maturity is in January 2018.

APN is looking to split out its New Zealand unit for possible listing on the NZX, retaining a 40 percent stake in the publisher of the New Zealand Herald newspaper and owner of The Radio Network.

An initial public offer of 60 percent of APN New Zealand would generate some A$308.6 million of gross proceeds, based on the carrying value of the unit. Of that, some A$169.4 million would be raised through the float, and a further NZ$150 million from a 'note payable' as a result of restructuring the New Zealand unit, according to the offer document for the note sale.

The funds raised would repay A$241.6 million of APN debt, and A$67.1 million would be added to the media group's cash holdings.

APN's dual-listed shares fell 1.1 percent to 90 cents on the NZX, and last traded at 82 Australian cents.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: Body massages and Uber are in, DVDs are out, says Stats NZ

Statistics New Zealand has rejigged the consumers price index basket in its latest three-year review, adding body massages, Airbnb and Uber and removing DVD and Blu-Ray players…More>>

ALSO:


StuffMe: Commerce Commission Welcomes Dismissal Of Merger Appeal

In a summary of their judgment released today, Justice Dobson and lay member Professor Martin Richardson dismissed the appellants’ process criticisms and found the Commission was entitled to place significant weight on the prospect of reduced quality of the products produced by the merged entity. More>>

ALSO:

Digital Futures: New Chief Technology Officer Role Created

Communications Minister Clare Curran has called for expressions of interest for the new role of Chief Technology Officer position to help drive a forward-looking digital agenda for New Zealand. More>>

Dry: Beef + Lamb Launches Drought Resources

The resources include a fact sheet outlining strategies to manage and mitigate the effects of drought, coping with stress on the farm and advice on feed requirements and animal welfare during the dry period. More>>

ALSO:

InternetNZ: Net Neutrality Failure In US "Will Hurt All Users"

InternetNZ Chief Executive Jordan Carter has condemned the decision by the United States communications regulator to undo 2015 open Internet rules, warning that all Internet users will end up worse off as a result. More>>

ALSO: