Silver Fern bonds early

Photo / APN

Silver Fern Farms says it will repay five-year bonds which mature on December 15, 2010, a month early.

It was able to repay the bonds ahead of schedule after renegotiating its banking partnerships for the next two years. The new syndicate involves Rabobank, HSBC, Westpac and Commonwealth Bank of Australia.

The repayment of debt would help reduce interest costs, the company said. The $75 million of bonds are listed on NZDX and have a coupon rate of 10.25 per cent.

The company said when releasing its interim accounts that at February 28 it had bank debt totalling $205.4 million and bonds on issue totalling $76 million.

The bank debt was reduced by $102.8 million from a year earlier and the bonds by $50.3 million.

- NZPA