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Kicking off the market with New Zealand’s first retail issuance of 2021 is Arvida’s inaugural issue of NZX-listed retail bonds, diversifying its funding sources and debt tenor.
Arvida is one of New Zealand’s largest aged care providers, formed in 2014. Today’s quotation of $125m 2.87% secured bonds on the NZX Debt Market adds Arvida to the list of issuers with both equity and debt listed on the NZX, providing flexibility for future fund-raising. The issue showed strong investor support with $50m of oversubscriptions allocated and pricing at the lower end of the margin range.
Chapman Tripp debt capital markets expert and Partner, Luke Ford, coordinated a team assisting Arvida that included Solicitors Tom van Schaik, Anna Chernyavskaya and Sarah Matthews. Cathryn Barber, the firm’s finance practice lead, assisted Arvida on its security and bank facilities and chaired the Due Diligence Committee. The offer required significant structuring to implement, liaising with Arvida’s bank lenders, statutory supervisors and regulators and managing a security structure with over 50 guarantors and 450 mortgages.
Arvida Chief Financial Officer Jeremy Nicoll said “A bond issue allows us to continue with the significant development programme in front of us providing diversification of funding sources and extended tenor at seven years. It also sets a proven template that can be readily accessed should we look to raise additional retail debt at a future date.”
ANZ acted as arranger and joint lead manager. Craigs Investment Partners, Forsyth Barr and Jarden were also joint lead managers. Guardian Trust was bond supervisor on the transaction and was advised by Bell Gully.