News Round Up

PINS hits $22 million, NZX index changes, Bluestar bond news and changes to redemption rights of US50 Fund.

Monday, December 19th 2005, 6:55AM

Absolute Capital’s capital protected fixed interest fund is proving popular with investors. It says PINs (packaged income notes) has received commitments of more than $22million.

This is made up of $18.77 mill from firm allocations by NZX primary market participants and institutions and $3.32 mill from the public offer.

PINs is projected to pay 9.25% and it plans to list on the NZDX market. The offer closes at 3pm December 21.

NZX index alterations
Index promotions for the two big IPOs of 2005 are the highlight of the December NZX quarterly index review.

Goodman Fielder is to be added to the NZX 50 Index and NZX 50 Portfolio Index. Its index weight will be derived from the proportion of its revenue generated in New Zealand. Based on the current prices of the other securities in the Index, Goodman Fielder will rank between 11th and 16th in the NZX 50 Index.

Goodman Fielder pushes Capital Properties out of the NZX50 and into NZX SmallCap Index. Capital Properties will continue to hold a place in the NZX Property Sector Index.

Vector is being promoted from the Midcap index to the NZX 10 Index. Carter Holt Harvey is to be transferred from the NZX 10 Index to the NZX MidCap Index where it will replace Vector. Carter Holt Harvey is expected to retain a place in the NZX 50 Index for the foreseeable future, so long as it remains listed.

These changes will take effect on January 4, the first trading day of the new year.

Blue Star bond news
Blue Star Print Group says that following a “strong response” to its $75 million capital bonds it intends to prepay its existing fixed rate subordinated bonds on February 17, and the rollover offer made to existing investors has become unconditional.

For each of their bonds, existing bondholders will be prepaid the bond principal, a prepayment premium and interest from October 15 to the prepayment date, less applicable withholding tax.

Blue Star Print Group’s new capital bonds bear a minimum annual interest rate of 9.10%. The Capital Bonds Offer is expected to close on 16 December 2005. The Capital Bonds will mature on 15 September 2012, but may be prepaid earlier in some circumstances.

Redemption right changes
The US50 Fund has changed the redemption rights its preference shares. The company says its directors have removed the restriction on quarterly redemption on all classes of Perpetual Preference Shares. The distinctions of mini, maxi, and macro will no longer exist.

The shares will all become and be referred to as Redeemable Preference Shares that have the same rights (except fees applicable to purchase tranche size on entry).

The change needs to be approved at a special general meeting. The company says the change means that investors “now have a guaranteed exit from US 50 Fund four times a year at the end of each quarter.”

The Redeemable Preference Shareholders can still choose to sell there holding at any time before the end of each quarter. However, the sale of Redeemable Preference Shares depends on there being a willing buyer available.

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