Archive | Air NZ

Propbd on Q Sn30Oct16 – Auckland Airport & Air NZ bonds, Summerset forecast, Kirkcaldie takeover complete

Auckland Airport issues $225 million of bonds
Air NZ issues $50 million of bonds
Summerset looking at 40-46% profit lift
Brierley completes Kirkcaldie takeover

Auckland Airport issues $225 million of bonds

Auckland International Airport Ltd has closed its 7-year bond issue after a bookbuild with $225 million of bonds issued.

The interest rate for the fixed rate bonds is 3.97%/year, reflecting a margin of 1.35% over the underlying swap rate. The offer opened on Wednesday with a margin of 1.4%/year indicated.

The bonds will be issued on Wednesday. There was no public pool for the offer but they’ll be listed on the NZX debt market.

Air NZ issues $50 million of bonds

Air NZ Ltd allocated $50 million of bonds in its 6-year unsecured, unsubordinated, fixed-rate issue on Friday. The interest rate is 4.25%/year.

The funds will be used for general business purposes, including repaying some of the bonds which mature on 15 November.

Summerset looking at 40-46% profit lift

Summerset Group Holdings Ltd said on Friday it was forecasting underlying profit for the year to December in a range of $53-55 million, which would be a 40-46% increase on the $37.8 million last year.

Chief financial officer Scott Scoullar said it reflected positive trading conditions across all its villages: “Occupation right sales have been strong since the half year, and are the key driver of the underlying profit forecast.”
The company didn’t provide a forecast for NZ IFRS net profit after tax due to the inherent uncertainty in fair value movement of investment property, a key component of this profit measure.

The directors provide an underlying profit measure to show realised & unrealised components of fair value movement of investment property & tax expense.

Brierley completes Kirkcaldie takeover

The former Kirkcaldie & Stains Ltd, renamed Wellington Merchants Ltd in July, will be delisted and its shares will cease to be quoted from close of business on Friday 11 November, following completion of the $3.45/share takeover by Sir Ron Brierley’s Mercantile Investment Co Ltd on Wednesday.

Kirkcaldie’s sold its Harbour City Centre building in Wellington 2 years ago, and its department store across the road last year to Australian retailer David Jones Ltd, which is owned by South African retailer Woolworths Holdings Ltd.

Earlier stories:
12 September 2016: Cashed-up retailer’s directors approve new Brierley bid
5 June 2015: Kirkcaldie & Stains to become a David Jones store
24 September 2014: Harbour City Centre sale approved

Attribution: Company releases.

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Air NZ confirms $75 million bond offer

Air NZ Ltd confirmed yesterday that it is offering $75 million of 6-year, unsecured, unsubordinated, fixed-rate bonds to New Zealand retail & institutional investors.

The offer opened yesterday, the interest rate will be announced following a bookbuild process, expected to be on 20 October, and the bonds are expected to be issued on 28 October.

As has been common in this round of bond issues by NZX-listed companies, there is no public pool.

Attribution: Company release.

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Airline alliance gets Singapore approval

The Competition Commission of Singapore has given clearance for the proposed alliance between Air NZ and Singapore Airlines. The alliance is also subject to the approval of the New Zealand Minister of Transport.

The Singaporean commission found that any competition concerns associated with the proposed alliance were outweighed by the net economic benefits to Singapore.

The alliance, announced in January, would enable Air NZ to fly the Auckland-Singapore route again and Singapore Airlines to operate the Airbus A380 to New Zealand for the first time. Pending approval, flights could start as early as December.

The airlines said the deal would boost their NZ-Singapore capacity by up to 30% year round & over time. Auckland International Airport Ltd said it would add 100,000 seats on the Auckland-Singapore route in the first year and bring a fourth A380 aircraft – the world’s largest airliner, with 525 seats in 3 classes – to the airport.

Attribution: Company release.

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Air NZ-Singapore alliance will widen visitor potential

Air NZ said yesterday it had agreed to form an alliance with Singapore Airlines enabling Air NZ to fly the Auckland-Singapore route again and Singapore Airlines to operate the Airbus A380 to New Zealand for the first time.

Auckland International Airport Ltd added some numbers showing what the increased capacity would mean.

The 2 airlines are seeking approval for the alliance from the Competition Commission of Singapore and the NZ Minister of Transport. Pending approval, flights could start as early as December 2014.

The airlines said the deal would boost their NZ-Singapore capacity by up to 30% year round & over time.

Auckland Airport said it would add 100,000 seats on the Auckland-Singapore route in the first year and bring a fourth A380 aircraft – the world’s largest airliner, with 525 seats in 3 classes – to the airport.

An important feature of the alliance is that it would extend Air NZ’s reach through Singapore Airlines’ networks, including the regional network of its subsidiary, SilkAir.

The airlines said Singapore Airlines would operate the A380 daily between Singapore & Auckland, progressively replacing an existing daily service with the smaller Boeing 777-300ER. Air NZ would launch daily services between Auckland & Singapore using newly refitted Boeing 777-200ERs, taking over 5 flights currently operated by Singapore Airlines and adding 2 more weekly flights, increasing the frequency to daily.

Subject to regulatory approvals, the airlines would aim to boost their existing capacity between New Zealand & Singapore by up to 30% year round over time. Singapore Airlines’ daily Singapore-Christchurch service would continue as part of the alliance.

The proposed alliance would enable Air NZ passengers to access codeshare travel on the Singapore Airlines network to South-east Asia, the UK, Europe & Africa, as well as SilkAir’s network. Singapore Airlines’ customers would be able to access codeshare travel across the Air NZ domestic network and to selected international destinations.

The alliance would see Air NZ’s ‘NZ’ code return to Singapore Airlines’ network for the first time since 2007. Air NZ last operated to Singapore in 2006.

Auckland Airport’s aeronautical commercial general manager, Glenn Wedlock, said passenger loadings on the South-east Asian routes into Auckland had been high in the last year, average above 85%.

“Auckland Airport estimates that the total additional capacity arising from both the alliance and the use of the A380 on the Singapore-Auckland route to be at least 100,000 seats in the first year, and significantly more once the A380 becomes a daily service.  Singapore Airlines’ decision to progressively introduce an A380 aircraft daily service on the route provides at least an extra 40,000 of those seats in that first year.”

From the airport company’s perspective, “Our focus on growing emerging markets such as India & Indonesia, as well as Australia & the Americas, provides passengers with greater choice, more convenient flight schedules & better value for money.

“It is also really great to see further evidence of the tourism industry’s shared commitment to deliver on New Zealand’s aspirations to grow air services as outlined in the New Zealand Tourism Industry Association’s Tourism 2025 strategy. There is a real sense that the industry is focused on working to deliver growth for the country. Air NZ’s & Singapore’s announcements are fantastic examples of this aspiration.”

Mr Wedlock said Singapore was a critical hub airport, providing New Zealand with access to South-east Asia and key tourism markets such as India & Indonesia. Passenger movements between New Zealand & Singapore grew by 10% in the last 12 months. In the last 3 years, passenger movements between New Zealand & India increased by 11%, and between New Zealand & Indonesia they increased by 39%.

“Today’s announcements strengthen Auckland’s position as an Australasian hub airport, and it will provide us with further opportunities for building even greater connectivity in tourism & trade for New Zealand.”

Attribution: Company release.

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Air NZ to make $150 million bond issue

Published 22 August 2011

Air NZ Ltd said on Friday it was considering a $150 million bond issue.

The unsecured, unsubordinated, fixed-rate bonds would have a maturity date of 15 November 2016 and the airline would use the funds for general business purposes.

Joint lead managers are First NZ Capital Securities Ltd and Craigs Investment Partners Ltd. The offer is expected to open on Monday 5 September.

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

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Air NZ announces $186 million rights issue

Air New Zealand Ltd is seeking $186 million from a renounceable 1:6 pro rata rights issue at $1.30/new share.


The issue is also extended to the convertible preference shares held by the Government, which can subscribe at a rate of 1:30 (these dshares weren’t consolidated on the 1:5 basis of the ordinary share consolidation on 23 August). The Government has confirmed it will subscribe for its whole entitlement.


Air New Zealand has agreed with Qantas that its redeemable convertible notes won’t be converted or redeemed before the Australian Competition Tribunal hands down its detailed judgment, with the earliest date for conversion or redemption being 31 January 2005. Pursuant to this agreement, Qantas won’t participate in the offer in respect of its notes.


The issue is available only to shareholders with Australian or New Zealand addresses and it won’t be underwritten.Rights trading will open on Tuesday 9 November and close on Friday 26 November. New ordinary shares will be allotted on Wednesday 8 December.

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