GFL
02/05/2013 10:20
GENERAL
REL: 1020 HRS GFNZ Group Limited
GENERAL: GFL: Sep 13 Scheduled repayments to be paid ahead of schedule
Media Release 2 May 2013
GENEVA FINANCE ANNOUNCES ITS 30 SEPTEMBER 2013 MORATORIUM REPAYMENT TO
INVESTORS WILL BE PAID OUT ON
8TH MAY APPROXIMATELY FIVE MONTHS AHEAD OF SCHEDULE.
NZAX-listed auto loan provider GFNZ Group Ltd (Geneva) announced that the
moratorium repayment of $4.9 million due on 30 September, will be paid on the
8th May, twenty two weeks ahead of schedule. This announcement maintains
Geneva's record of early repayment, following the early repayments of the
September 2010, March 2011, September 2011, March 2012, September 12 and
March 13 scheduled debenture principal repayments.
This repayment is being made under resolution 1.4(b) of the interest bearing
repayment plan to repay moratorium debenture holders and BOS International
(Australia) Limited early, either in full or in part on a pro rata basis.
Inclusive of this payment, Geneva Finance has repaid in excess of $144
million of investor principal and interest payments since the company entered
moratorium in November 2007 owing a net $132.4 million to investors. These
repayments are inclusive of interest payments to investors (including the
company's bankers) of $41.1 million, at a weighted average interest rate of
10.5%, and principal repayments to public debenture holders totaling $73.1
million.
This early repayment follows on from a number of successful funding
initiatives including:
o The placement of $5.3 million of new business receivables ($3.3m in
August 12 and $2.0m in January 13) into "Prime Asset Trust Limited" a
scheme, that utilised this security to raise a total of $4.6m million of new
funding.
o The raising of $2.8m of new equity in two tranches with the first being
February 2012 and the second in November 2012.
o New debenture funding raised under the current prospectus
o The sale and lease back, of the Group's Mt Wellington Head Office building
in April of this year.
Funding from these sources has been supplemented with positive operating cash
flows and it is the combined impact of these initiatives that has put the
business in a position to maintain its track record of paying investors ahead
of schedule.
Geneva Managing Director David O'Connell says, "We are operating in a
difficult financial environment and as such it is pleasing to be in a
position to continue to repay investors ahead of schedule. Going forward
however, it is essential that we maintain our focus on the key challenges
ahead of us as we seek to both maintain our debt repayment program and create
opportunities to enhance shareholder value."
Overview
The re emergence of Geneva from Moratorium in November 2007, has been built
around the achievement of a series of milestones, with each being achieved
before progressing to the next objective. These milestones fall into four
stages:
1. Firstly, from November 2007 through to January 2012, the focus was on
repositioning the business model to a lower risk market segment, cost
reduction, improving distribution systems for the company's products, broaden
the scope of the business with the acquisition of an insurance operation and
a debt collection business to supplement the core lending activities and most
importantly the repayment of investor debt.
2. Secondly, From January 12 the focus moved to improving the company's
equity position and as at the end of November 2012, Geneva had raised new
equity of $2.8m, and secured a cornerstone shareholder, Federal Pacific Group
Limited who now hold a 36% stake in the company.
3. Thirdly, The sale of non core assets, in particular our property assets to
allow the company to focus its resources on sustaining and expanding the new
business model receivables.
4. Fourthly building on the above, we are now looking to expand the core
business to create shareholder value. Core to this challenge, is attracting
new funding at affordable rates. With this in mind on the 11th February 2013,
Geneva announced it would supplement the funding initiates referred to above
with the issue of a prospectus.
ends
About Geneva
Geneva is a New Zealand-owned finance company that provides finance and
financial services to the consumer credit and small to medium business
markets. Geneva commenced business on 7 October 2002. Geneva's loans are
originated through three distribution channels (Direct, Broker and Dealer),
processed by the central sales desk then administered through a national
operations centre located at Mt Wellington, Auckland.
The company borrows money by the issue of debenture stock. It also has a
banking facility with BOS International (Australia) Limited.
Geneva (GFL) is listed on the NZAX. There are 280,872,249 issued shares held
by 2,617 investors.
About Federal Pacific
FedPac's operations throughout the Pacific region include investments in
Banking, Personal and Business Finance, Money Transfer and Foreign Exchange
Trading. The company was incorporated in 1993 and is based in Auckland, New
Zealand.
Alexander Communications
Kate Alexander
+64 (0)27 244 6094
[email protected]
For further information:
End CA:00235778 For:GFL Type:GENERAL Time:2013-05-02 10:20:54
(20min delay)