GPG issues capital notes

Sir Ron Brierley's investment company Guinness Peat Group has raised $100 million through a reorganisation of its capital notes.

The company's finance arm had bought back $250 million of unsecured subordinated capital notes issued in 2001. It sold $182 million of new notes to holders of those notes in an offer then allowed them to exchange new notes for old notes.

Today GPG Finance said it had raised a further $168.3 million via the sale of new capital notes. The notes expire on 15 November 2012.

The transactions meant GPG had bought back $250 million of notes and sold $350 million of new notes, giving it an extra $100 million.

GPG said it had raised the money to augment existing finance facilities and provide it with increased financial flexibility.

GPG director Tony Gibbs said the company was not building up a war chest, rather it had lots of cash on hand all the time.

The notes were marketed in a prospectus issued in July.

New Zealand Exchange said the issue of a total of $350 million of new notes on the New Zealand Debt Market (NZDX) by GPG Finance was a significant event.

It bought the total capital raised this year to date on the NZDX to $2.2 billion, an increase of $880 million on the same period last year.

- NZPA