SMARTPAY ANNOUNCES EXTENSIONS TO ITS CORPORATE DEBT AT SIGNIFICANTLY REDUCED INTEREST RATES AND CLOSES REDEEMABLE PREFERENCE SHARE OFFER
Monday, September 19, 2011
AUCKLAND, 19 September 2011 - SmartPay
(NZX: SPY), a leading provider of payments and transactional
solutions in New Zealand and Australia, today announced that it has
rolled over the majority of its short term corporate debt at
significantly reduced interest rates.
Since SmartPay's RPS offer was launched the company has reached
agreement with the majority of its funders to roll its short term
corporate debt until 2012, says Chairman, Wayne Johnson.
"The rollover is at substantially reduced interest rates similar
to the anticipated RPS offer and will take effect from the
01October 2011, reflecting our funders' increased confidence in the
strategy and performance of the business."
At the same time SmartPay Investments Limited has closed its
redeemable preference share offer. The company was anticipating
raising up to $6 million via the lower interest RPS offer and was
planning to use the funds raised to repay higher priced mezzanine
debt.
"Unfortunately the New Zealand market simply does not yet have
an appetite for this type of offer. This reinforces our view to
continue to look offshore for new funding and complete the ASX
listing in 2011,"says Johnson.
"With the latest trading results published, a substantial
increase in EBITDA over previous years, combined with a solid
forward order book, the company has now proven its business model.
We are seeing opportunities to obtain core bank funding which
was not available to the company when the RPS was released.
Additionally, we are in advanced discussions with parties who have
the ability to invest in the business and provide substantial funds
to assist the company and fund its Australian and New Zealand
growth, potential acquisitions and assist in the listing on the
ASX.
"These are all positive signs for SmartPay, providing us with
further confidence that our strategy for the business is solid. We
have had a number of indications of interest for ongoing bulk
funding of our rental book which provides us with the ability to
further grow the business in both New Zealand and Australia. These
funders include mainstream banks in New Zealand and Australia
together with sophisticated private investors," says Johnson
The ASX listing is important to further SmartPay's strategy to
increase shareholder value and to ensure longer term returns while
providing the funding needed to grow the business.
"We have also identified a number of acquisitions that if
completed, should significantly increase EBITDA, shareholder value
and our earnings per share," says Johnson.
The ASX compliance listing programme continues, albeit slightly
later than expected with this now anticipated to be towards
mid-November.
SmartPay will redeem the $342,000 of RPS which have been issued
at the end of December and will shortly be sending redemption
notices to RPS holders.
ENDS
For further information contact:
Ian Bailey, Managing Director, SmartPay, Mobile +64 21 664
941
Wayne Johnson, Chairman SmartPay Mobile +61 411 544 449
Andrew Donaldson, CEO, SmartPay +64 27 255 4682
Julien Leys, JML Communications, +64 21 655 598
About SmartPay Limited
SmartPay is a leading provider of integrated merchant services
utilising the Internet and broadband connectivity.
SmartPay's product set includes:
- Telecommunications products and services including Voice Over
IP, Broadband, EFTPOS terminals and secure EFTPOS internet
connectivity
- Audio and video, music, messaging and media via its Retail
Radio product set.
- Prepayment products and transactional processing services for
the taxi industry.
SmartPay Core Products include:
•
Wi-Fi - one of the largest networks in New Zealand
•
In-store Audio Visual Promotional Systems - Retail Radio
•
Internet enabled EFTPOS equipment sales and rental
•
Gift Cards
•
Secure Internet Payments
•
Mobile Top-up
•
Calling Cards
•
Bill Payment Solutions
•
Voice over IP (VOIP)
•
Online Payments
For more information visit - www.smartpayltd.com