PPCS gives details of bond issue

12.00pm

Meat processor PPCS Ltd is to offer $50 million in secured, fixed rate bonds to the public to fund the redemption of Richmond capital notes later this year.

PPCS said the bond issue followed the recent completion of the purchase of minority shares in Richmond Ltd and the consolidation of the enlarged group's banking facilities under a new PPCS Group facility.

PPCS said the proceeds of the issue will be used to finance the recently announced redemption for cash of Richmond capital notes in December.

The bonds will be secured over the assets of PPCS and three guaranteeing subsidiaries, including Richmond Ltd.

PPCS said a prospectus for the offer was expected to be registered on November 3 and the offer would open on November 8 and close on December 3.

Forsyth Barr and Westpac Institutional Bank are joint lead managers of the offer.

South Island based PPCS finally succeeded in taking over Hawke's Bay rival Richmond this year after a long running tussle.

- NZPA