Feltex Int. arranges U.S. bill facility

Press, 30 May 1987, Page 29

Feltex Int. arranges U.S. bill facility

Feltex International, Ltd, has made an $175 million investment in America's manufacturing sector with the purchase of 94.4 per cent of Allsteel Inc, a privatelyowned, Chicago-based maker of commercial furniture.

Feltex’s managing director, Mr Peter Stanes, said yesterday it meant that in one move his company had increased its turnover 50 per cent and lifted assets 20 per cent.

Allsteel had sales of more than $350 million in 1986. The other 5.6 per cent of Allsteel’s capital is held by its employees. Feltex has arranged a financing facility on the world’s cheapest money market, the U.S. commercial paper market, the company said. That market was tightly controlled and normally a "closed shop” to non-resident companies of Feltex’s size and world standing. However, Feltex’s merchant bankers, Security Pacific New Zealand, Ltd, had structured a facility permitting Feltex access to the market through a commercial paper programme carrying Security Pacific’s international credit rating. Security Pacific had also been appointed principal dealer and distribution agent for the commercial paper programme.