Phaunos Timber Fund Limited has announced that agreement in principle has been reached with Rayonier, Phaunos’ joint venture partner in the Matariki Forestry Group, for Rayonier to provide a capital infusion for the repayment of all outstanding amounts under its existing NZ$235m credit facility and for general purposes. The investment by Rayonier into the Matariki JV is subject to certain closing conditions, including New Zealand Overseas Investment Office approval and the preparation of customary transaction documents. The transaction is expected to close by the end of 2015 and is estimated to realize interest cost savings for the Matariki JV of approximately NZ$15m per annum.
Phauno’s manager, Stephen Addicott of Stafford Capital Partners, said “The reduction of the Matariki JV debt has been a key objective for both the directors of Phaunos and Stafford Capital Partners since the latter became manager in July 2014. The transaction, based on Matariki’s net asset value is not expected to involve any loss of value or loss of rights under the existing shareholders agreement. While the capital injection will reduce Phaunos’ interest in Matariki from 35% to 23%, the interest payment savings will assist the provision of more reliable dividends to Phaunos from this cornerstone, high quality investment“.
They have also told shareholders that a number of individual property sales from within the Pradera Roja and Eucateca teak estates are being negotiated. On the basis that all of the transactions are completed, total proceeds are expected to be in the order of US$6m with prices consistent with the December 2014 net asset values. Interested parties are currently undertaking due diligence.
PTF : Phaunos jv partner pays of debt in NZ subsidiary