Buddle Findlay is pleased to have advised New Zealand Agri Brokers (NZAB) on its new rural lending business NZAB Capital, which involved a significant restructure of the existing business and establishment of a new warehouse funding structure.
The new lending platform, NZAB Capital, is a non-bank lender that offers capital support to New Zealand farmers (that qualify as wholesale clients) whose strategic opportunities fall outside traditional bank lending criteria. The lending platform, that addresses a gap in the market, complements NZAB's existing advisory business, and is supported by powerhouse Macquarie Bank located in Australia and Arcbridge Partners a New Zealand based investment banking firm specialising in structured finance and capital formation.
As part of establishing the new platform, we also assisted NZAB with a significant restructure of its business to maximise group and capital raising efficiency. This included:
- Completion of a FMCA wholesale offer which involved scrip for scrip arrangements for existing NZAB shareholders as well as new external investors
- Completion of several employee share purchase schemes
- Establishment of a new limited partnership that owns shares in a new holding company, NZAB Group, which in turn owns the new lending platform and existing NZAB advisory business
- Completing new governing documents for all new holding and subsidiary entities, as well as a warrant arrangements with supporting partners.
The Buddle Findlay team included partners Mark Odlin, Jan Etwell and Paul Farrugia, consultants Peter Owles and Shane Johnstone, and senior associate Celeste Brown.
Mark Odlin commented "We're delighted to have assisted NZAB on this groundbreaking transaction. The principals have established a robust and innovative structure which will provide a genuine finance alternative in the New Zealand agri sector."
