2 Jun 2010

South Canterbury rollover eases cash pressure

6:04 am on 2 June 2010

South Canterbury Finance says it has eased pressure on access to cash by rolling over some of its debenture stocks.

The company, which last week had its credit rating downgraded from BB to B+, has been approaching debenture holders and asking them to consider reinvesting with longer-dated maturities.

Chief executive Sandy Maier says the approach has significantly improved the company's maturity profile - so much so that refinancing with new funding isn't required.

Earlier this year, SCF held a series of national roadshows aimed at convincing investors it was a secure and worthwhile investment - ahead of $460 million in debentures and deposits maturing before the end of June.

Mr Maier says the company's been making good progress. He says it's working with its trustee, and the Treasury, to obtain the required consents to enable George Kerr's Torchlight fund to complete a $37.5 million cash injection into the firm.