F&P move no surprise – experts

Fisher & Paykel says it has until June 30 to sign a new deal. Photo / Richard Robinson

Market commentators say it is no surprise Fisher & Paykel Appliances is taking longer than it hoped to work through its debt issues.

The whiteware maker yesterday confirmed it may need to extend its $80 million interim funding facility beyond the initial April 30 deadline.

"The company's expectation is that the interim facility will be repaid from the proceeds of a refinancing of the total bank debt of the Appliances Group.

"For this reason, the interim facility contemplated that its term may need to be extended, subject to the agreement of the company's banking syndicate," the company said. Fisher & Paykel said it was still in talks with its banks.

On Wednesday Fisher & Paykel's vice-president of investor relations Paul Brockett said the company had until June 30 to negotiate the deal.

Hamilton Hindin Greene client adviser James Smalley said it was no surprise the company was likely to push out its refinancing talks.

"It was always going to be hard so the fact that it is taking longer, although regrettable, is not unexpected."

But he said pushing out the deadline for another two months did not end the uncertainty surrounding the stock.

"The market will have to continue to wait for the company to come up with something substantial to deal with their debt issues."

Market commentator Arthur Lim said it appeared Fisher & Paykel was getting more time to work through the issues with its bankers which could be seen as good news.

"It certainly suggests the banks are accommodating them," he said.

Tyndall Investment Management's Rickey Ward said it was likely the bankers would be waiting for the fully audited half-year results of the company before finalising any deal.

Those are expected to be finished soon but are unlikely to be completed before April 30.

Fisher & Paykel Appliances shocked the market in February with a trading update which revealed plunging sales figures and a big rise in its overseas debt levels because of a drop in the New Zealand dollar.

Fisher & Paykel's share price closed up 2c at 46c.