January 20, 2010

Fonterra plans bond offer

Fonterra Co-operative Group Limited announced it is considering making an offer of senior unsecured bonds. 

The offer is expected to open in February/March 2010.
 

The issue will be for a maximum of NZ$250 million (US$182.4 million). Fonterra will mandate ANZ, part of ANZ National Bank Limited; BNZ; and Westpac Institutional Bank, a division of Westpac Banking Corporation, as Joint-Lead Managers.
 

No money is currently being sought and no applications for securities will be accepted or money received unless the investor has received a simplified disclosure prospectus.
 

Further details of the offer will be made available once a simplified disclosure prospectus is available prior to the offer launch.

Fonterra intends to use any money raised for general business purposes, including partial replacement of a EUR300 million (US$426.3 million) Euro Medium Term Note (EMTN) maturing in April 2010. 
 

The bond offer is distinct from the current offer for Fonterra’s farmer shareholders to buy additional shares in the Co-operative.