Goodman Fielder New Zealand Limited (GFNZ), has confirmed it is making an offer of up to $175 million of senior unsecured fixed rate bonds (with the option to accept a further $75 million in oversubscriptions) to the New Zealand public.

The issue is unrated and the term of the bond is 5.5 years (maturity 16 May 2016.) The rate set occurs on the 18th of November 2010 and will be determined at the higher of the Minimum Interest rate of 7.25% and the applicable swap rate plus the interest rate margin. The margin will be set following a book build process and announced to the market on or about the opening date, 26 October 2010.    

The obligations of GFNZ in respect of the bonds will be guaranteed on an unsecured basis by Goodman Fielder Limited. The bonds will rank equally in right of payment of interest and principal with all other senior unsecured debt of the Goodman Fielder group, including existing debt owed to Goodman Fielder's banking group.

The funds raised from the offer will be used to repay bank debt of the Goodman Fielder group.