Tower gives options, repays banks

Tower Limited has finalised its issuing of 11.4 million options worth over $17 million to 40 of its senior executives, and has used almost $70 million of the $185 million raised through a capital raising last year to pay back its bank debts two years ahead of schedule.

The options issue, which the group flagged it would offer back in April, was concluded on Monday and sees a number of senior executives across the group in both Australia and New Zealand given options packages.

However group managing director Keith Taylor is not included in the roll-out, in which shares are exercisable at $1.53 on or after April 1, 2007 and lapse on March 31, 2010.

Tower says the options are part of each executives employment package, with the exercise price determined by the group’s share price between March 30 and April 5, 2004 when the board first determined the issue and advised the relevant executives they would be offered options.

In terms of repaying all its senior debt, the group has paid-off two facilities arranged last year following a capital raising that saw a proposal put forward by First New Zealand Capital and Credit Suisse First Boston accepted.

The two facilities repaid were a revolving cash facility in New Zealand for almost $24 million and a local bank accepted bills facility for $45 million.

In light of the repayment, Tower’s capital structure now comprises shareholder funds of NZ$796 million ($674 million) and subordinated debt in the form of capital bonds etc. of NZ$200 million ($170 million).