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Monday 25th May 2009 |
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Fisher & Paykel Appliances, facing a deadline to repay or refinance a temporary banking facility, had its stock halted pending completion of capital management initiatives.
The appliances manufacturer “has been working with its banking syndicate with a view to refinancing the total bank debt of the Appliances Group by May 29,” it said in a statement today. “At the same time, FPA has been reviewing the Group’s capital structure and examining alternative sources of capital.”
F&P Appliances may announce plans to raise $150 million to $200 million, according to Forsyth Barr analyst Guy Hallwright. The company has considered ways to bolster its balance sheet including bringing in a cornerstone shareholder. The shares were placed in a trading halt until Wednesday.
The Auckland-based manufacturer gained waivers to its banking covenants in March and secured the temporary facility with its syndicate of banks, gaining more time to refinance existing debt that may have ballooned to $570 million as at March 31. In April, the $80 million facility was extended through May 29.
F&P Appliances was caught by the global slump, which sapped demand while a weakening New Zealand dollar drove up costs of overseas debt it took on to relocate plants to cheaper sites nearer export markets. Its shares have tumbled 54% this year, second only to the slide in Nuplex Industries, which bit the bullet in March and sold shares at a deep discount to strengthen its balance sheet.
F&P Appliances is also due to post earnings this week. Hallwright forecasts a full-year net loss of about $17 million, or earnings before one-time items of $28 million. The consensus of estimates compiled by Reuters for a $5.3 loss or earnings before one-time items of $27 million.
Whirlpool Corp., the world’s largest appliance maker and a technology partner for F&P, last month posted a 28% drop in first quarter earnings. Still, the shares climbed as the results beat expectations as the U.S. company squeezed down on costs. Whirlpool stock has doubled since reaching a low of US$19.39 in March.
F&P Appliances gained 3.2% to 65 cents on Friday. The stock was at $4.88 in July 2006.
Businesswire.co.nz
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