St Laurence seeking funds from rights issue

Property investor St Laurence Property & Finance (SLPF) said today it intended to raise $22.7 million via a pro-rata renounceable rights issue of convertible notes.

The new notes will be issued at $1.05 and will have a fixed coupon of 9.0 per cent per annum on the principal amount of $1.00.

The notes will convert into SLPF fully paid ordinary shares on December 1.

Under the offer, that holders of SLPF existing property notes will be entitled to subscribe for 1 new property note for every 5 existing notes held.

Executive chairman Kevin Podmore said the rights issue was to allow St Laurence to invest in more property, for development opportunities, and to retire debt.

The issue is planned to open on March 15 and close on April 17.

Full details will be provided in a short-form prospectus expected to be registered on March 7.

First NZ Capital has been appointed as lead manager for the offer.

Mr Podmore said St Laurence Ltd had agreed to take up its entitlement of approximately 5.6 million notes for around $5.88m.

- NZPA