MARAC announces pricing of proposed offer

MARAC announces pricing of proposed offer of Secured Bonds

17 June 2008

The Board of MARAC Finance Limited ("MARAC") is considering making an offer of $100 million of first ranking, five-year, fixed rate secured bonds ("Secured Bonds") with up to a further $25 million of Secured Bonds available by way of oversubscriptions (the "Offer"). 

The interest rate payable on the MARAC Secured Bonds will be set following the closing of the Offer at the higher of:

·         a minimum interest rate of 10.50% per annum; or

·         the aggregate of the prevailing five-year swap rate and the margin of 2.75%.

Forsyth Barr Limited has been appointed Arranger and Organising Participant, and Forsyth Barr Limited and ANZ National Bank Limited have been appointed Joint Lead Managers (“Joint Lead Managers”) to the proposed Offer. The Offer is expected to be underwritten to $100 million of Secured Bonds by Forsyth Barr Group Limited and ANZ National Bank Limited.

MARAC and the Joint Lead Managers reserve the right to allocate all of the Secured Bonds (including any oversubscriptions) by way of firm allocation to clients of NZX Firms, institutions and other approved intermediaries. Secured Bonds not taken up under firm allocations (if any) may be available through a public pool.

Full details of the Secured Bonds and the terms of the Offer will be set out in the Investment Statement and Prospectus in respect of the Offer that is expected to be registered on or around 18 June 2008.

No money is currently being sought and no applications for the Secured Bonds will be accepted or money received unless the subscriber has received an Investment Statement for the Offer.

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