McConnon’s Aorangi to aid Norgate and RPI

McConnon’s Aorangi to aid Norgate and RPI

March 19 – Aorangi Laboratories, the investment vehicle of Baird McConnon’s family, will stump up funds to allow Rural Portfolio Investments to refinance NZ$42.5 million of preference shares when they come due April 15.

Rural Portfolios, or RPI, is a 50-50 venture between McConnon and PGG Wrightson chairman Craig Norgate, whose interests include 30% of Wrightson and indirectly a holding in NZ Farming Systems Uruguay.

The refinancing of RPI’s debt has been subject to intense interest in the stock market as investors speculated it would sell Wrightson shares to pay its own debts, a prospect Norgate has hosed down. Both Wrightson and NZ Farming Systems are heavily geared.

Late yesterday, RPI said it had entered into commitments to refinance the redeemable preference shares, with debt and equity funding from Aorangi and further debt funding from New Zealand financial institutions. It gave no details, saying the commitments are subject to final documentation.

Wrightson, which has secured its own refinancing in the past month, has soared 90% since reaching a record low close of 59 cents on Feb. 20.

The stock climbed 1.8% to NZ$1.12 today. NZ Farming Systems sank as low as 35 cents on Feb. 25 and has since soared 86% to trade at 65 cents today. The company, formed by Wrightson, gained a Fitch credit rating allowing it to raise funds in Uruguay to continue its dairy farm conversions.

Both companies are trading at a fraction of their 2008 highs. NZ Farming Systems reached NZ$1.96 on May 8 and Wrightson touched NZ$2.95 on Aug. 20.

(Businesswire)

© Scoop Media