Blue Star Print Group announces $45 million bond issue

Blue Star Print Group - now in local ownership following a management buyout - today announced a $45 million issue of fixed rate, subordinated bonds.

The seven year unsecured bonds carry an interest rate of 10.75% and are scheduled to be repaid in cash on 15 October 2008. The offer opens on 8 October 2001 and closes on 18 January 2002.

Funds raised by the bond offering, which has been arranged and is fully underwritten by Credit Suisse First Boston NZ Securities Ltd, will be used to refinance initial funding arrangements.

The management team completed the $165 million purchase of Blue Star Print Group in July. Blue Star Print Group is one of Australasia's leading commercial printing groups comprising 18 business units in New Zealand and Australia, with 1,000 staff. It generated revenues of $278 million for the year to April 2001.

Blue Star Print Group chairman Tom Sturgess said the bond offering was being made as part of the overall funding arrangements for the management buyout.

"We expect these bonds to be well-received in the New Zealand marketplace, given the strength of the Blue Star Print Group's businesses and our track record of success."

Sturgess said management bought Blue Star Print Group because it recognised the significant ongoing growth opportunities in New Zealand and Australia, Blue Star Print Group's robust cash flows and its advanced technology base.

"We intend to continue to strengthen our market leading position in integrated print services by further investing in new technologies and taking full advantage of Blue Star Print Group's extensive capabilities in both New Zealand and Australia," he said.

After the offer has closed, the intention is to list the bonds - which are only open to New Zealand residents - on the NZ Stock Exchange. The first interest payment will be made on 15 April 2002 with subsequent payments made every six months. The minimum application is $5,000, increasing in multiples of $1,000.

Chief executive Keith Brodie said Blue Star Print Group has a track record of consistent revenue growth and steady operating earnings with revenues for the year to 30 June 2002 expected to top $294 million. The full prospective financial information is contained in the registered prospectus available from Blue Star Print Group.

"Our impressive client portfolio features a wide range of blue chip companies and organizations in both countries, including agencies and departments of the New Zealand Government and many of Australia and New Zealand's leading corporates and financial institutions.

"We are very strong in each market and, during the past five years, Blue Star Print Group's capabilities have grown steadily, both through acquisitions and ongoing investment in new capital equipment, technology and personnel," said Brodie.

For further information please contact:

Keith Brodie
Chief Executive
Blue Star Print Group
Phone 09) 477 0402
Mobile (0274) 809 768
or
David Ballantyne
Finance Director
Blue Star Print Group
Phone (09) 358-1945
Mobile (025) 274-7586