Hellaby to raise $50m war chest

Retail investor Hellaby Holdings Ltd today announced plans to raise $50 million through capital notes to bolster its war chest for future acquisitions.

The company, whose investments include No 1 Shoe Warehouse, Hannahs and The BBQ Factory , said the five-year notes would be unsecured, subordinated fixed interest debt obligations offering a fixed interest rate of 8.50 per cent a year.

The capital notes would be listed on the stock exchange's debt market (NZDX).

Managing director David Houldsworth said the proceeds would initially be used to reduce company debt and over time fund future growth.

"Hellaby has developed a substantial investment portfolio with leading market positions and strong brands," Mr Houldsworth said.

"This capital raising represents an opportunity to further implement this strategy and continue to deliver shareholder returns through acquisitions and organic growth."

Over the past five years, Hellaby generated total shareholder returns of 28.2 per cent per annum, compared with an NZSX top 50 average of 14.7 per cent.

A $5 million priority pool has been reserved for existing Hellaby shareholders in the offer, which opens on May 24. The minimum application value was set at $5000.

Westpac Institutional Bank and Forsyth Barr Ltd are co-leading the offer.

Hellaby has interests in New Zealand and Australian automotive, industrial, retail, manufacturing and distribution companies.

As at May 1 it had a market capitalisation of around $223m, ranking it 36th in the benchmark top 50 index.

Shares in Hellaby last traded steady at $4.30 against a year high of $6.22 and a low of $4.10.

- NZPA