Blue Star Print Group's $45 million fixed rate bond issue has closed fully subscribed.
Blue Star said in a statement to the stock exchange today that the issue -- open only to New Zealanders -- closed on Friday as scheduled after opening in October.
The bond offer was made as part of
the funding arrangements for last July's $165 million management buy out of US-based Blue Star Print Group.
The seven year, unsecured, subordinated bonds carry an interest rate of 10.75 per cent, and are due to be repaid in cash on October 15, 2008.
Interest payments will be made every six months from April.
The bonds will be listed on the New Zealand Stock Exchange from today.
The Auckland-based commercial printer comprises 18 business units in New Zealand and Australia, with 1000 staff.
Blue Star Print management paid $165 million for the company when it was peeled off Blue Star Group in July, after its US parent company, US Office Products (USOP), filed for bankruptcy protection.
A month earlier, USOP sold its Australasian book selling businesses -- Whitcoulls, Bennetts, and the Australian Angus & Robertson chains -- to London-based WH Smith.
- NZPA
