PGG Wrightson has issued convertible redeemable notes (CRNs) to China-based shareholder Agria to a value equivalent of $US25m (about $NZ33.8m), as part of an agreement announced between the two companies in October last year.Under the agreement, proceeds
PGG Wrightson has issued convertible redeemable notes (CRNs) to China-based shareholder Agria to a value equivalent of $US25m (about $NZ33.8m), as part of an agreement announced between the two companies in October last year.
Under the agreement, proceeds from the CRNs are being invested as new capital into PGG Wrightson Finance, to enhance regulatory capital and provide greater liquidity and capacity for growth in that business.
PGG Wrightson managing director Tim Miles said that the issuing of the CRNs was the final part of his company's successful fund raising, which had seen PGG Wrightson repay $200m in bank debt ahead of schedule.
The additional funding would boost PGG Wrightson Finance's existing capital base and better position that company, Mr Miles said.
Proceeds from the issue of the CRNs will be used by PGG Wrightson for preference shares issued by PGG Wrightson Finance equivalent to the value of the CRNs.
