Discount retailing chain The Warehouse has announced it has received more than NZ$200 million worth of initial bids for its NZ$100 million bond issue that will open on Wednesday and close on April 23. The 5 year bonds have been priced with a minimum interest rate of 7.3%, which works out as a margin to benchmark rates of 215 basis points. The Warehouse said the offer had been so well bid that there would not be a public offer and the full NZ$100 million had been reserved for clients of those participating in the 'book-build' pre-sale bidding. The final interest rate would be announced on April 28 and the offer has a minimum application of NZ$5,000, it said. The money raised would be used to restructure existing debt for longer terms and to diversify The Warehouse's funding sources. Craigs Investment Partners was the lead manager, while ANZ and Forsyth Barr were the co-managers. The trustee was The New Zealand Guardian Trust. The bond offer not carry a credit rating. Here is a presentation by The Warehouse on the bond offering. Here is a link to the full prospectus.
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