Archive | Marac

S&P affirms Marac rating, lifts outlook

Published 12 August 2010

Standard & Poor’s (Australia) Pty Ltd’s ratings services affirmed Marac Finance Ltd’s credit rating as BB+ today and improved its outlook from negative to stable.

 

Marac is a subsidiary of Pyne Gould Corp Ltd. Pyne Gould managing director Jeff Greenslade said: “The rating outlook improvement is an acknowledgement by S&P of the substantial progress made within Marac’s business over the last 12 months and reflects improving asset quality, strong liquidity, a robust balance sheet & capital base and Marac’s good market position.” “The improved rating outlook adds further momentum to the ‘Heartland’ banking concept now being advanced in conjunction with Canterbury Building Society & Southern Cross Building Society”. S&P said in its research update Marac was well placed to comply with the new regulatory capital adequacy framework which will apply from December.

Marac & Pyne Gould’s full-year audited results will be released at the end of August.

 

Earlier stories:

2 November 2009: Pyne Gould completes shift of Marac loans

2 September 2009: $99 million of impairments take Pyne Gould to loss

1 October 2008: Pyne Gould seeks banking licence

 

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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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Marac buys GMAC retail vehicle financing book

Published 2 July 2010

Pyne Gould Corp Ltd subsidiary Marac Finance Ltd said yesterday it had bought GMAC NZ Ltd’s retail vehicle financing book from GMAC NZ & Cari NZ.

 

Marac’s purchase includes the secured loan receivables, finance leases & operating leases of GMAC NZ, which announced in 2008 that it would cease retail finance business and move out of the wholesale business.

 

Marac will pay the $70 million purchase price in cash. Completion is expected to occur on 30 July.

 

Marac managing director Jeff Greenslade said: “It is a clear fit with our strategic direction, our proposed merger with Canterbury Building Society & Southern Cross Building Society and our banking aspirations. The GMAC customer base will enhance access to our target market of heartland New Zealanders – small & medium-sized businesses and New Zealand families – and provide us with the opportunity to present them with finance, investment & insurance solutions.”

 

Earlier stories:

2 June 2010: Pyne Gould & 2 building societies look at merged bank

2 November 2009: Pyne Gould completes shift of Marac loans

 

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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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Marac profit slips

Published 2 September 2009

Marac Finance Ltd’s profit for the June year slipped from $25.9 million to $19 million on a 6.5% decline in net operating income to $65.6 million. Pretax profit fell 30% to $27.3 million.

 

With a receivables book now exceeding $1.1 billion, Marac increased total assets by 4.5% to $1.4 billion and held the rise in liabilities to 3.9% and a total of $1.26 billion. Its equity has increased from $140 million to $153 million.

 

Marac is a subsidiary of Pyne Gould Corp Ltd.

 

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Attribution: Company statement, story written by Bob Dey for the Bob Dey Property Report.

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Marac profit up 5%, reinvestment rate 63%

Published 26 August 2008

Marac Finance Ltd increased net profit after tax by 5% to $25.9 million for the June year, on net operating income up 17% to $70.2 million.

 

Managing director Brian Jolliffe said the Pyne Gould Corp Ltd subsidiary’s operating costs:net operating income, at 37%, were up marginally on last year.

 

“While investors generally have become more reluctant to invest in finance company offerings, Marac Finance’s reinvestment rate was maintained at normal historical levels of around 63% in the year under review.Standard & Poor’s reconfirmed the company’s investment grade credit rating.Mr Jolliffe set out Marac’s strong points in the current market:

 

The securitisation programme it began in August 2007 has provided a new funding facility of $300 millionIt finalised a new $480 million syndicated bank facility with all of New Zealand’s major banks, an increase of $80 million on previous individual facilitiesAfter balance date, a 5-year secured bond programme raised $104.2 million, providing greater diversification and increasing liquidity further.

Mr Jolliffe said: "Marac Finance’s liquidity was $250 million at 31 July. This is a much higher level than the company traditionally holds, but in the current difficult market environment is considered to be a prudent step."Total financial receivables rose 8% to $1.3b billion: “This is a slower growth rate than in previous years and all occurred in the first half. In the second half of the year Marac Finance focused on meeting the needsof existing clients and foregoing some growth opportunities. Finance receivables continue to be well spread, both regionally and also by the type of asset financed.“Instalment loan arrears to total receivables remained relatively constant at 0.5%. Collectively impaired assets, which are assets with an increased risk on collection, increased from 8.1% to 11.7% of total finance receivables. Individually impaired assets, being those which the company believes will not be collected in full, amount to 1.6% of total finance receivables and are fully provided for.Impaired asset expense was $5.7 million in the current year compared to the low $1 million last year.”

 

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Attribution: Company release, story written by Bob Dey for this website.

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Marac confirms prospectus for $125 million

Published 18 June 2008

Pyne Gould Corp subsidiary Marac Finance Ltd announced its bond offer on Monday – $100 million, with up to $25 million of oversubscriptions, of first-ranking, 5-year, fixed-rate, secured bonds.The interest rate will be set at the higher of 10.5% or a 2.75% margin over the aggregate of the prevailing 5-year swap rate.Forsyth Barr Ltd is arranger & organising participant. The prospectus should be out today.

 

Earlier story:

11 June 2008: Marac proposes $125 million bond offer

 

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Attribution: Company statement, story written by Bob Dey for this website.

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Marac proposes $125 million bond offer

Published 11 June 2008

Pyne Gould Corp Ltd’s finance subsidiary, Marac Finance Ltd, said on Monday it intended to make a public offer of $100 million of first-ranking 5-year fixed-rate secured bonds, with up to $25 million more in oversubscriptions.

 

The offer will be underwritten up to $100 million by Forsyth Barr Ltd & ANZ National Bank Ltd.

 

Marac had already increased its banking lines in March, by $80 million to $480 million through a banking syndication, and said it now holds more than $140 million of cash & undrawn funding lines.  The managing director of Pyne Gould & Marac, Brian Jolliffe, said Marac’s retail-funded secured debenture programme remained at around $560 million and that reinvestment rates were within the normal 65-75% range. “An increased level of new funds inflows has been noted, with new fund inflows for May at the highest levels since June 2007.”Mr Jolliffe said asset growth had slowed in the second half of the financial year, but Marac’s asset quality remained strong and instalment arrears remained at normal levels, about 0.5% of receivables. He said the directors were confident Marac would improve on the net profit after tax of $24.7 million achieved in the June 2007 year.

 

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Attribution: Company statement, story written by Bob Dey for this website.

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