CHH secures A$500M loan

By Phil Boeyen, ShareChat Business News Editor

Thursday 7th March 2002

Carter Holt Harvey (NZSE: CAH) is upbeat over a new syndicated Australian dollar loan facility which it says was oversubscribed.

The loan for A$500 million replaces an existing arrangement which is due to expire next month.

Carter Holt's chief financial officer, Jonathan Mason, says he is extremely pleased with the strong support the company has received from the banking market in what is a reasonably difficult credit environment.

"We have been able to obtain attractive rates in Australian dollars. Our growing presence in Australia with in excess of A$1.75 billion of Australian assets, 44% of our sales and 32% of our operating earnings now coming from this market, makes this an appropriate move for Carter Holt Harvey.

"It will support the issuance of commercial paper by the company and be used for general corporate funding purposes including the repayment of the company's first Yankee bonds of US$150 million (matures in April 2002) to the extent these bonds are not repaid from surplus cash."

Lead manager for the syndication was Citibank N.A. with Bank of New Zealand as co-arranger.

The company says the syndication was well supported by both Australasian and international banks and closed oversubscribed with ten banks electing to participate in the facility.

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