18 Apr 2013

ANZ Bank to provide Smiths City Group finance

8:35 am on 18 April 2013

Smiths City Group says ANZ Bank will provide finance from Thursday, which the company says will reduce its interest costs.

Late last year, the Christchurch-based retailer said it would terminate its relationship with its financier Fisher & Paykel Finance and shift to a major bank.

It says ANZ will provide a senior revolving secured facility of $75 million which will cost it about 6% compared with more than 10% under Fisher & Paykel Finance.

Smith City will incur a break fee of $1.4 million for terminating its facility with Fisher & Paykel Finance. The new deal means the retailer will also have to inject $6 million of its own money.