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Fisher & Paykel Appliances' finance arm has secured new funding facilities worth $335 million.
The announcement yesterday comes a day after the company said it could still forge ahead with a plan to raise $100 million through the issue of capital notes later this year - despite the weak appetite for debt among investors - citing the "prudent" need for funding diversification, given the economic climate.
The new funding arrangement gives Fisher & Paykel Finance "significantly longer-term liquidity" than was previously provided for, the company said.
The deal involves a syndicate of banks led by ANZ, and comprises a multi-tranche cash advance facility through three lenders. It replaces bilateral banking facilities previously provided by those banks.
The total facility of $335 million is comprised of multiple tranches of one, two and three-year terms of $125 million, $105 million and $105 million respectively.
Chief executive John Bongard said the deal was a real vote of confidence from the banking sector.
Bongard said as at September 30, the company had more than $125 million of undrawn committed bank facilities.
He said reinvestment rates have averaged 65 per cent over the past three months, and 70 per cent in September.
The finance business, which includes the Farmers finance division acquired in 2003, contributed a normalised operating profit of $26.9 million before interest and tax in the last financial year.
Shares in Fisher & Paykel Appliances closed up 4c to $1.70. Plans to sell the finance arm failed earlier this year after the company failed to find a suitable buyer.
