South Canterbury Finance is paying off the last of a $US100 million (NZ$144m) dollar private placement facility ahead of schedule, and is also reporting an inflow of funds gathering momentum in January and this month.Investors holding notes issued under t
South Canterbury Finance is paying off the last of a $US100 million (NZ$144m) dollar private placement facility ahead of schedule, and is also reporting an inflow of funds gathering momentum in January and this month.
Investors holding notes issued under the private placement facility were entitled to require repayment of their investment when certain covenants were breached following release of the company's financial statements for the year to June.
Under an agreement reached with the noteholders, the facility was to be repaid by March 31.
South Canterbury has now said it is making the final payment of $US17.7 million today.
Chief executive Sandy Maier said South Canterbury's favourable liquidity position allowed it an early exit from the "disadvantageous" terms imposed by the noteholders in October.
Southbury Group, the sole shareholder of South Canterbury's parent company, was also making an early payment of the last instalment of a refinancing fee agreed last year with the private placement noteholders.
Mr Maier said South Canterbury was continuing to enjoy a net inflow of funds that gathered momentum in January and had extended through February.
The company intends to publish its half year preliminary financial statements and provide a report on the strengthening of its capital structure early next week.
