Carters takes out $500m loan to buy back bonds

Carter Holt Harvey hired Credit Suisse Group to arrange a $500 million loan to buy back bonds. A banker involved in the deal said Carters would borrow for less than 12 months to refinance US$150 million of 20-year bonds due in 2015 and another US$150 million 30-year bonds due in 2024.

Carters has also bought building supplies company Umbraco Group which runs seven branches and two frame and truss manufacturing plants under the ITM banner across Northland and Auckland.

Carters chief executive Stuart Munro said the values of the two businesses were very similar, and had "numerous synergies", with trade and retail customers.

The figure paid was not disclosed.