South Canterbury Finance update

1 June 2010

South Canterbury Finance update

South Canterbury Finance Limited is working to obtain the consents required to enable the previously announced equity injection from Southbury Corporation Limited of $37.5 million involving Torchlight Fund No 1 LP to be completed.

Both Southbury Corporation and Torchlight Fund remain committed to completing the equity injection as soon as the necessary consents have been obtained.

Separately, South Canterbury Finance and New Zealand Credit Fund are close to finalising terms for the replacement of the $75 million funding facility.

Further announcements will be made by South Canterbury Finance as soon as it is in a position to do so.

In the meantime, South Canterbury Finance Chief Executive Officer Sandy Maier says the programme to smooth the debenture maturity profile is making excellent progress.

“At 31 May, the holders of $132.9 million of debentures scheduled to mature in coming months had accepted the Company's offer to reinvest in new debentures with longer dated maturities. As a result, the Company's maturity profile and reinvestment rates have been significantly improved. By rolling these maturities over early, refinancing with new funding from
other sources is not required."

Ends

© Scoop Media