Margaret River-based Palandri Group's financial wing aims to raise up to $15 million through a notes issue to retire debt to its principal financiers, including an $11 million debt with Maple Commercial Finance.
West Perth's Palandri Finance Ltd is making its second notes offer, this time of 120,000 notes at $100 each to raise the money, with Bentleys MRI acting as auditors to the deal, and the public trustee of Queensland being appointed independent trustee.
The company has set $12 million as the target but will also allow for over-subscriptions to a total of $3 million.
Aside from the $11 million Maple debt facility, the deal's prospectus indicates Palandri aims to repay approximately $3 million worth of outstanding early debt instruments, and other debts of around $1.9 million with the proceeds of this issue.
Palandri chief executive Darrel Jarvis loaned the company an additional $760,000 in April. He was repaid $350,000 in June, but is still owed $1.9 million by the company, at least $1 million of which is due to be repaid by October 1.
Applications for the deal will open on August 14, and is due to close by February 14 2007, if not closed earlier.
