ALF
09/10/2014 15:28
GENERAL
REL: 1528 HRS Allied Farmers Limited
GENERAL: ALF: Allied Farmers Settles CAML Debt
Allied Farmers Limited (ALF) is pleased to announce that it has completed the
previously announced $1 million bond issue by its wholly owned subsidiary
Allied Farmers Rural Limited (AFRL) (020 Bond), and fully settled its on
demand outstanding debts and obligations to its secured lender Crown Asset
Management Limited (CAML).
This is a significant milestone achievement for ALF as it extinguishes the
uncertainties associated with its first ranking secured debt, which has until
now been on demand. Long term first ranking secured debt of ALF to CAML has
been reduced from $15 million in August 2012.
The medium term maturity of the $1 million 020 Bond gives ALF improved
certainty in funding, as efforts continue to improve the financial position
of the group and build on the current earnings.
The settlement of the obligations to CAML and the issue of the 020 Bond will
mean a one off positive impact to the earnings of Allied Farmers for the June
2015 financial year.
In August 2014 ALF announced a profit of $1.16 million for the year ended 30
June 2014.
The key terms of the 020 Bonds (which were issued to a small number of
Eligible Persons as defined by the Securities Act 1978) are as follows:
o First ranking secured bonds maturing 30 September 2017;
o Interest rate equivalent to the 1 year interest rate swap mid-rate per
annum as determined by Westpac New Zealand Limited on 30 September of each
year plus a margin of 6 percentage points, payable quarterly;
o Security substantially the same as that previously held by CAML:
- General security interest over the assets of ALF and its group charging
subsidiaries being AFRL, Allied Farmers Investments Limited, and Allied
Farmers (New Zealand) Ltd (Security Obligors);
- Guarantee by the Security Obligors in respect of the obligations of
AFRL; and
- Specific security over the shares issued by NZ Farmers Livestock
Limited and held by AFRL - representing 57 % of the ordinary capital of NZ
Farmers Livestock Limited.
Garry Bluett
Chairman
End CA:00256264 For:ALF Type:GENERAL Time:2014-10-09 15:28:46
