PFI Secures $50M Liquidity Facility

NZX and media
announcement
—
25 March 2020


PFI SECURES $50M LIQUIDITY FACILITY

Property for Industry Limited (PFI, the Company) is pleased to announce that, in response to the risks
associated with the COVID-19 pandemic, it has secured a new $50 million liquidity facility from the
Commonwealth Bank of Australia, New Zealand Branch (CBA).

The new facility is for 18 months and is in addition to the bonds and syndicated bank facility PFI already
has in place, which are detailed in the table below:

Bonds and bank facilities:

Bond / bank facility Expiry Amount
PFI020 bond 1 October 2025 $100M
PFI010 bond 28 November 2024 $100M
Syndicated bank facility (ANZ,
BNZ, CBA, Westpac)
4 November 2023 $150M
4 November 2022 $150M
CBA liquidity facility 18 September 2021 $50M
Weighted average expiry: 3.7 years Total: $550M

The weighted average term to expiry of PFI’s bonds and bank facilities stands at 3.7 years as at today’s
date, and there are no expiries in the current financial year, as illustrated in the graph below:

Debt facility maturity profile ($m):



PFI Chief Executive Officer, Simon Woodhams, notes: “With the impacts of COVID-19 continuing to
evolve, we have taken a pro-active step to secure additional liquidity from one of our key banking
partners, CBA.”

PFI Chief Finance and Operating Officer, Craig Peirce, continues: “As at 31 December 2019, PFI had
bonds and bank facilities drawn to a total of around $415.6M, and that position is largely unchanged as
at today’s date.

At that time, the Company also had capital commitments over the next 24 months totalling $81.5M,
which we planned to fund using a combination of undrawn bank facilities and the proceeds from the

NZX and media
announcement
—
25 March 2020


divestment of PFI’s remaining non-industrial properties, which had a combined book value as at 31
December 2019 of $119.4M
1
.

Securing this additional liquidity gives the Company in excess of $130M of undrawn facilities, which
allows us to meet our capital commitments regardless of the progress of our divestment programme.”

Simon Woodhams concludes: “PFI ended the 2019 financial year with gearing
2
of 28.2% and an interest
cover ratio
3
of 4.0 times. While the negative impacts from the COVID-19 pandemic on PFI’s business
are not yet clear, headroom to covenant levels and high levels of liquidity provide PFI with a strong
balance sheet position.”

ENDS






















ABOUT PFI & CONTACT

PFI is an NZX listed property vehicle specialising in industrial property. PFI’s nationwide portfolio of 93 properties is leased to
142 tenants.

For further information please contact:

SIMON WOODHAMS CRAIG PEIRCE
Chief Executive Officer Chief Finance and Operating Officer
--- ---
Phone: +64 21 749 770 Phone: +64 21 248 6301
Email: woodhams@propertyforindustry.co.nz Email: peirce@propertyforindustry.co.nz
---
Property for Industry Limited
Shed 24, Prince’s Wharf, 147 Quay Street, Auckland 1010
PO Box 1147, Shortland Street, Auckland 1140
---
www.propertyforindustry.co.nz
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1
PFI had already secured the sale of 2 Pacific Rise, Mount Wellington, Auckland, on 17 December 2019 and settled the sale of
this property on 13 March 2020.
2
That is, total borrowings as a percentage of the most recent independent valuation of the property portfolio. Covenant: 50%.
3
That is, the ratio of interest expense and bank fees to operating earnings excluding interest expense and bank fees. Covenant:
2.0 times.