SmartPay closes Redeemable Preference Share offer

Merchant service provider SmartPay has closed its Redeemable Preference Share (RPS) offer, saying it will instead look offshore for funding to offset its debt.

SmartPay had looked to raise up to $6 million via the low-interest RPS offer, according to SmartPay chairman, Wayne Johnson.

"Unfortunately the New Zealand market simply does not yet have an appetite for this type of offer," Johnson says.

"This reinforces our view to continue to look offshore for new funding and complete the ASX listing in 2011.

Johnson adds that the company has reached agreement with the majority of its funders to roll over its short-term corporate debt until 2012.

"The rollover is at substantially reduced interest rates, similar to the anticipated RPS offer," Johnson says, "reflecting our funders' increased confidence in the strategy and performance of the business.

"With the latest trading results published, a substantial increase in EBITDA over previous years, combined with a solid forward order book, the company has now proven its business model.

SmartPay will redeem the $342,000 of RPS issued so far at the end of December.