Rates Round Up
Strategic Finance investors set to get first repayment; Redgroup listed bond yields spike as covenant breach looms; Geneva Finance makes early repayment; BNZ to launch five-year bond, will pay brokerage fees.
Monday, August 9th 2010, 9:45AM
Strategic Finance investors set to get first repayment
Investors in failed financier Strategic Finance will get their first repayment by September 3, according to receivers John Fisk and Colin McCloy of PricewaterhouseCoopers.
In their second letter to investors, the paid say debenture holders will get a repayment of between 1.5 cents and 2.5 cents in the dollar.
The sale of the loan book has been delayed by problems in obtaining valuations of the 20 biggest loans. One valuation is still outstanding, and due to its size, no final bids have been made for the loan book.
Redgroup listed bond yields spike as covenant breach looms
The yield on Redgroup retail's bonds on the NZX spiked as high as 65%, and were recently at 51% this month, after the company said it will likely breach its banking covenants by the end of the month. The bonds, which pay a coupon of 9.5%, mature in December this year.
Geneva Finance makes early repayment
Geneva finance made an early 2.5 cents in the dollar repayment to investors scheduled for September. The firm has another five years to pay back some 43% of debenture holders' principal after they voted to alter the payment schedule earlier this year.
BNZ to launch five-year bond, will pay brokerage fees
The Bank of New Zealand will launch a double-A rated five-year bond at 1.6% above the five-year swap rate on Aug. 13. The bank will pay brokerage fees to approved institutions and financial intermediaries as it looks to raise $100 million.
| « SCF blames adviser for share price plunge | Allied Farmers puts capital raising on hold amid trustee concerns » |
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