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South Canterbury Finance brochures - Source: ONE News -
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South Canterbury Finance said it will repay its $US100 ($NZ135) million private placement facility over 5.5 months.
The finance company is also putting a new prospectus in the market and says it has a new credit facility for $75m with a new unnamed third party.
South Canterbury Finance has been talking to investors in the facility after a credit rating downgrade triggered a right for them to require repayment three months following the downgrade.
It said on Thursday it had reached agreement in principle on repayment terms with the five noteholders in the facility.
The agreement provided for the principal to be repaid over the next 5.5 months.
The trustee for South Canterbury Finance debenture stock investors, Trustee Executors Ltd, and ratings agency Standard and Poor's, have been briefed on the arrangement.
Unwinding currency swap hedges on the facility will release cash for South Canterbury Finance.
The company is also now moving to register a new prospectus for the issue of debenture stock and deposits.
The company is covered by the government's retail deposit guarantee scheme and wants to participate in the extended version of the scheme.
South Canterbury Finance has cancelled a $100m standby credit facility with banks, which was undrawn.
The new facility is in the final stages of being arranged, and is expected to become effective during the next week.
South Canterbury Finance's owner, Southbury Group, has appointed Forsyth Barr and Harmos Horton Lusk as advisers to assist in the restructuring and recapitalisation of the group. This process is ongoing.
