PGG Wrightson refinances

Investors’ fears PGG Wrightson  wouldn’t be able to renegotiate debt financing haven’t been realsied.

The rural services company’s shares have crashed in the last week as the market grew increasingly pessimistic about PGG Wrightson’s chances of securing funding to replace the $180 million of debt that matures in April.

But today the company says it has received bank commitments to refinance all of its facilities. ANZ, BNZ and Westpac are providing a total of $475 million in three tranches:
– $275 million of core debt for a 30-month period to September 2011
– $125 million amortising facility to December 2010
– $75 million of seasonal working capital to April 2010.

The company’s half-year report showed a $32. 8  million loss or a $4.65 million net profit  depending which version you take.

If you read the second story to the end it explains the difference because the first is described as an accounting loss which includes non-trading items. Among those will be the costs involved with its its failed courtship of Silver Fern Farms.

That will feature in the books for the next half year too because while SFF has spurned PGW”s offer of $10 million in compensation for non-consumation of the deal and is talking about wanting as much as $144 million.

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