SmartPay shares soar after equity, debt raising   30 May 2012

Shares of SmartPay jumped after the eftpos terminal company said it raised $13 million in new equity capital and secured $25 million of bank facilities, allowing it to repay costlier existing debt and redeem its capital notes.

SmartPay sold the shares to institutional investors at 11.5 cents apiece, a level it hasn't traded at since November last year. The sale is subject to shareholder approval. The stock surged 39 percent to 12.5 percent today.

The company also secured new banking facilities from ASB, including a $20 million, three-year facility to recapitalise and restructure the balance sheet and $5 million as a "growth capex facility." Restructuring will include using funds to repay "high priced securitisation and mezzanine debt" and the redemption/conversion of the capital notes.

"On this basis the only debt on the balance sheet post the recapitalisation will be the ASB facility which is at a very competitive interest rate," said chief executive Bradley Gerdis.

SmartPay today reported a 39 percent decline in annual sales to $28.9 million, resulting in a net loss of $12 million. It attributed the results to a maturing of growth in the New Zealand market after an industry-wide upgrade of terminals and slower than expected growth in Australia.

It also blamed its previous business model, under which it recognised revenue from rental contracts at the time contracts were sold.

The company separately today announced the appointment of Australian businessman Ivan Hammerschlag as chairman and the departure of Ian Bailey as a director. Gerdis will join the board as managing director.

The company also named Rod Severn to the position of chief operating officer.

It has dusted off plans to seek a listing on the ASX this calendar year, it said.

(BusinessDesk)

Add a comment

Bookmark and Share

News

Dynamic New Zealand writers to feature at this year’s Edinburgh International Book Festival

20 Jul 2017 Arts
Dynamic New Zealand writers making waves at home and abroad will present their work and participate in this year’s Edinburgh... more

$9.4m to support students with English as a second language

26 Jun 2017 Education
22 June 2017 Students learning English as a second language will benefit from a further $9.4 million being made available under... more

Business

Rocket launch a huge step for New Zealand’s space industry

25 May 2017 Business News
25 May 2017 Minister for Economic Development Simon Bridges has congratulated the team at Rocket Lab on the successful launch of... more

Increased investor confidence welcomed

29 May 2017 Business News
29 May 2017 Commerce and Consumer Affairs Minister Jacqui Dean today welcomed the Financial Markets Authority annual survey results... more

Living

NZ's Sola Rosa heading "Back to You" in London - interview with Andrew Spraggon

6 Jul 2017 Entertainment By Charlotte Everett
Sola Rosa Soundsystem heads back to London with a show on 27 July – NZNewsUK London Editor Charlotte Everett caught up with... more

Spirit of “Mateship” prominent at London ANZAC commemorations

25 Apr 2017 ANZAC By Charlotte Everett
All photos copyright Peter Livingstone Photography. Lead image: HRH The Duke of York (far right), with the Hon Alexander Downer (far... more

Property

New Zealand Housing Affordability Measure released

10 May 2017 Property
10 May 2017 The Ministry of Business, Innovation and Employment’s (MBIE) new Housing Affordability Measure will allow the market... more

NZ house prices gain 11% in October

14 Nov 2016 Property
Article - BusinessDesk Monday 14 November 2016 10:28 AM NZ house prices gain 11% in October, driven by sales of higher value homes By... more

Migration

Suspension of decision making authority

25 Apr 2017 Migration
24 April 2017Immigration Minister Michael Woodhouse is taking steps to improve Immigration New Zealand’s decision making... more

Recognised Seasonal Employers employ more Kiwis

8 Feb 2017 Migration
7 Feb 2017 Immigration Minister Michael Woodhouse welcomes a report showing the vast majority of employers who take on seasonal... more

Travel

International visitors projected to spend $15 billion

12 May 2017 Travel & Tourism
12 May 2017 New Zealand’s tourism sector is forecast to grow significantly over the next seven years, with international... more

Tourism spending continues rise in 2017

10 May 2017 Travel & Tourism
27 April 2017 Tourism spending by both international and domestic visitors continues to grow strongly in 2017, Acting Tourism Minister... more

Sport

SPECIAL LIMITED OFFER: Barbarians v NZ, Twickenham 4 Nov - £55 tickets, All Blacks Supporters Bay

20 Jul 2017 Rugby
In 2009 the Barbarian team had a phenomenal line up of world class players; Matt Giteau, Victor Matfield, George Smith, Jamie Roberts,... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the Gareth Morgan crusade First published on Werewolf more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome more

Kiwi Success

Law Commissioner appointed

29 May 2017 Appointments
29 May 2017 Former Secretary for Justice Belinda Clark has been appointed as Law Commissioner, Justice Minister Amy Adams announced... more

Spencer to be Acting Governor of Reserve Bank

8 Feb 2017 Appointments
7 Feb 2017 Finance Minister Steven Joyce will appoint current Deputy Reserve Bank Governor Grant Spencer as the Acting Governor of... more

Recruitment

Online job ads continue growing strongly

26 Jun 2017 Recruitment
23 June 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith says the latest Jobs Online report shows strong growth... more

New employment resource for young people

1 Mar 2017 Recruitment
28 Feb 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith and Associate Education Minister Louise Upston have... more

s