Fonterra Co-operative Group Limited has confirmed that it is considering making an offer of NZ$250 million of senior bonds to institutional investors and to New Zealand retail investors.
In a statement to NZX Fonterra said full details of the offer will be released the week beginning 13 April 2015.
The bonds are expected to mature in October 2021. Proceeds from the offer will be used for "general corporate purposes".
ANZ has been appointed as arranger for the proposed offer. The joint lead managers are ANZ, BNZ, CBA and Westpac.
The offer will be made pursuant to the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as existing quoted debt securities.
The bonds are expected to be quoted on the NZX Debt Market.
Investors can register their interest in the offer by contacting the arranger, joint lead managers or their financial advisor.
Indications of interest will not constitute an obligation or commitment of any kind. No money is currently being sought and no applications for the bonds will be accepted or money received until the offer opens and the investor has received a terms sheet.
As reported last week, Fonterra's forecast of a milk price for farmers of $4.70 per kilogram of milk solids in the current season looks under serious threat after another big slump in global dairy prices last.
Farmers were "disappointed" last week when Fonterra trimmed its forecast dividend range by 5c after producing interim results it conceded were below farmers' expectations.
However, it retained its milk price forecast at $4.70 for the current season.
6 Comments
Fonterra eyes rival farmers with agricultural funding fix
http://www.afr.com/business/agriculture/fonterra-eyes-rival-farmers-wit…?
said it, the equity thing is all about Oz.
An announcement that Fonterra will be launching an Equity Partners fund at the end of the year, will be viewed positively by this capital hungry sector
Some are asking what size the loan book in Australia already, and how equity would be preferred to loans of zero interest
An example Loan of $AUD 220,000, and 0% here:
Page 20:
At 3 December 2014 the Group has a $220,000 interest free advance from Fonterrra Milk Australia Pty Ltd which has a maturity date of 30 November 2015.
http://www.asx.com.au/asxpdf/20150227/pdf/42wyx8fyqg1mzx.pdf
http://www.asx.com.au/asx/research/company.do#!/AHF
Australian Vet recruited by New Zealand dairy giant Fonterra to look after 100,000 cows in China
http://www.radioaustralia.net.au/international/2015-04-07/australian-ve…?
shareholders would make better bond holders (as in Holland).
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FrieslandCampina free member bonds
Members and former-members in the ‘closed group’ can hold, buy or sell interest-bearing free member bonds. Sales and purchases are made on an internal market. There are up to six trading days a year. Free member bonds are traded at a face value of €50, plus interest accrued from 1 June to the payment date. FrieslandCampina has entered into an agreement with a liquidity provider to ensure a smooth internal market. If supply exceeds demand, this party takes up bonds and when demand exceeds supply it sells the bonds in its portfolio.
http://www.frieslandcampina.com/english/financial/funding-by-members.aspx?activetab=2#tabs
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