The successful refinancing of Rural Portfolio Capital's redeemable preference shares will be welcomed by note-holders and the market alike, ABN Amro Craigs broker Peter McIntyre says.
Rural Portfolio, the investment vehicle of Dunedin's McConnon family and Craig Norgate, announced to the NZX that it had successfully funded the $41 million it was seeking.
The refinancing package is made up of equity and debt funding from Aorangi Laboratories Ltd (a 50% shareholder in Rural Portfolio Investments Ltd, which is the parent company of Rural Portfolio Investments Securities Ltd) and debt funding from New Zealand financial institutions.
The commitments were subject to completion of documentation between all parties, the NZX note said.
Mr McIntyre said the announcement was "great news".
"It shows you can refinance in these times. It is a really positive sign for this market."
Rural Portfolio had been trading at a yield of 50% as investors factored in the risk of not refinancing.
Investors who had bought the notes recently would be well rewarded, he said.
