Debt issues hit market

By PAUL PANCKHURST

Feltex Carpets is expected to be first cab off the rank in a fresh wave of debt issues seeking up to $550 million from New Zealand investors.

Market sources say the Australia-headquartered company will seek $50 million in a capital note issue to be handled by sharebroking firm Forsyth Barr.

An announcement is imminent.

The Feltex issue comes on top of plans by Graeme Hart's Burns Philp for a note issue of up to $200 million, connected with the takeover of Goodman Fielder.

That issue is expected to be launched in late April or early May.

Also on the cards is an issue of up to $300 million of subordinated notes by insurer Insurance Australia Group. Unlike most New Zealand debt issues, this one would be expected to be investment grade.

Flagged last October, IAG's issue was originally intended for the first quarter of the year. IAG says the proposal remains live.

Brokers say the issues will test the market's appetite for debt.