Fonterra will cap its latest New Zealand bond offer at $250 million in contrast to its oversubscribed effort in February last year.
Late yesterday Fonterra confirmed it was considering making an offer of senior unsecured bonds.
The dairy co-operative's
Fonterra will cap its latest New Zealand bond offer at $250 million in contrast to its oversubscribed effort in February last year.
Late yesterday Fonterra confirmed it was considering making an offer of senior unsecured bonds.
The dairy co-operative’s treasury general manager Stephan Deschamps told NBR the details of the offer would be announced in the next few weeks but was firm on its upper limited.
Early last year, Fonterra was seeking to raise $300 million with bonds offering a minimum 7.75% return, but with an ability to accept over subscriptions.
The company issued $800 million bonds due in 2015.
Money raised from the bond issue would be used to replaced debt in the form of a 300 million euro Euro Medium Term Note (EMTN) by April.
Mr Deschamps the rest would be funded out of operating cash.
He indicated it was unlikely there would be a second bond issue in New Zealand this year, but could not rule it out. Overseas bond issues were also possible.
Fonterra remains in the midst of its capital restructuring plans. Farmers had until today to decide if they wanted to pay additional shares in their company on top of the shares they hold based on milk production.
However, there will be other trading windows during the year.
