KEY POINTS:
A media and communications investment fund - which may eventually list on the NZX - has snapped up an entire $250 million convertible note issue by Independent News and Media (INM).
The bond issue was part of a standard debt refinancing by INM, the parent company of APN which publishes the New Zealand Herald.
Equity Partners, the investment group which launched the media fund, set up an infrastructure fund earlier this year offering New Zealanders a stake in London's Thames Water. That fund successfully completed the $95 million IPO and is planning to make further infrastructure investments.
The INM bonds would be the seed asset for the new fund, Equity Partners chief executive Jason Dale said yesterday.
The plan was to grow the income and capital of the Equity Partners Media fund by investing in further media and communications assets, Dale said.
The company was also planning to make a public offer of shares in the media fund by the end of November.
Dale would not rule out a listing on the NZX at some point in the future.
No money is currently being sought and no application for the shares would be accepted or money received unless the subscriber has received an investment statement for the shares.
The 10 year convertible notes, priced at $1 each, are ultimately convertible into INM shares and are backed by INM, which is listed on the London and Irish Stock Exchanges.
INM chief executive Anthony O'Reilly said in the statement that the agreement provided funds to repay guaranteed subordinated notes prior to their maturity "thereby extending the group's debt maturity profile at a reduced cost."
STAKE HOLDER
* Equity Partners is an investment group set up by George Kerr.
* An Equity Partners infrastructure fund has already raised $100 million to give local investors a stake in London's Thames Water on the NZX.
* A new fund has been launched to focus on media and communications sector investments.
* The fund has an entire $250 million issue of Independent News and Media bonds to be its seed investment.
