Correspondence
Back to Correspondence[copy typed from PDF of letter received from Fisher & Paykel Appliances Holdings Limited]
Fisher & Paykel Appliances Holdings Limited
78 Springs Road, East Tamaki
P O Box 58546, Greenmount
Auckland 2141, New Zealand
11 June 2009
NZSA
Corporate
PO Box 6310
AUCKLAND CITY
Attention: Bruce Sheppard
Dear Bruce
I refer to your letter of 21 May 2009, sent on behalf of the New Zealand Shareholders Association.
The Association is to be commended for taking such an active interest on behalf of its members.
Your letter raised a number of matters relating to the capital structure of the company. We believe that all of the matters raised have now been addressed by way of the initiatives announced by the company on 27 May 2009. These included that:
1.The existing bank facilities have been successfully negotiated, with core
bank facilities in place for a three year term;
2. A minimum of NZ$189.3 equity raising was being undertaken consisting
of an initial placement to Haier of NZ$46.5 million, and a fully
underwritten rights issue of NZ$142.9 million; and that
3. Haier would be making a total investment in the company of between
$NZ79.8 million and NZ$82.2 million.
The Association also asked that the company disclose its bank covenants in detail. This information is set out in the Investment Statement and Prospectus for a rights offer of new ordinary shares dated 27 May 2009.
In terms of reducing debt, the company has announced that in addition to the equity raising, it is looking at other debt reduction initiatives. These initiatives include reducing inventory and the proposed sale of the sites at both 78 Springs Road, East Tamaki, New Zealand and in Cleveland, Australia.
For completeness, I enclose a copy of the company’s stock exchange announcement dated 27 May 2009.
Finally, I would like to thank you for providing the company with adequate time to respond to the matters raised by the Association.
Yours faithfully
Gary Paykel
Chairman