Pacific Retail sets capital notes interest at 9.25 percent

By NZPA

Tuesday 22nd October 2002

Pacific Retail Group's capital notes offer closed oversubscribed by $3.7 million on Friday.

PRG chairman Maurice Kidd said the company was pleased with the success of the $60 million offer, "particularly in light of the current market conditions where there have been a number of competing issues and general investment uncertainties".

PRG set the interest rate payable on the secured capital notes today at the greater of 9.25 percent per annum, or 3.00 percent over the equivalent term government stock rate, with interest payable quarterly.

The first coupon payment will be made on December 15.

Secondary trading of the capital notes is expected to begin on the New Zealand Stock Exchange on Thursday.

When it launched the offer in September, PRG said it could accept up to $15 million in oversubscriptions.

The computer and electrical goods retailer will use the extra capital to fund ongoing growth.

Pacific Retail Group owns the Noel Leeming, Bond and Bond, and Computer City chains as well as giftware store Living and Giving, and Bendon lingerie.

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