NZ$100 million offers accepted for APN Media Bonds

See following market announcement issued for APN:

MARKET ANNOUNCEMENT

NZ$100 million offers accepted for APN Media Bonds

SYDNEY, Friday, 12 November 2010 - APN News & Media Limited (ASX, NZX: APN) (APN) today confirmed that it has accepted firm commitments for NZ$100 million of its APN Media Bonds and that the offer size has been set at that level. The book build closed earlier today. The retail offer will open to New Zealand investors on 15 November 2010 and will close on 10 December 2010.

APN News & Media Chief Financial Officer, Peter Myers, said that APN is pleased with the result of its inaugural bond issue to New Zealand investors. “APN Media Bonds provide investors an opportunity to participate in a company with significant operations in, and commitment to, the New Zealand Market. The recently announced successful banking extensions have given us great flexibility in our funding options. With this flexibility in mind, and having regard to recent market movements in interest rates, we have set 7.8% as the appropriate minimum interest rate and accepted the NZ$100 million in offers to meet our diversification objectives.”

The APN Media Bonds will have a maturity date of 15 March 2016.

The Bonds will have a minimum interest rate of 7.80% p.a. The actual rate will be set on Tuesday, 14 December 2010, and will be set at the greater of:

the minimum interest rate; and
the sum of the margin of 3.10% p.a. over the applicable swap rate.

Interest will be paid quarterly, with the first interest payment date scheduled to occur on 15 March 2011. Early Bird Interest of 5.00% p.a. will be paid on subscription moneys from the date money is banked until (but excluding) the Issue Date.

The offer opens on Monday, 15 November 2010 to investors in New Zealand and on Saturday, 20 November 2010 to investors in Australia and closes on Friday, 10 December 2010. The offer will be available to both New Zealand and Australian investors under the Trans-Tasman mutual recognition regime. The issuer will pay approved issuer levy on its own account in respect of interest payments to eligible non-NZ investors.

The APN Media Bonds will be unsecured, unsubordinated fixed rate debt obligations of APN Media (NZ) Limited, and will be guaranteed on an unsecured basis by each member of APN’s bank guarantor group, which comprises APN and certain wholly owned subsidiaries of APN. The Bonds will rank pari passu with the debt under the APN group’s banking facilities.

Joint Lead Managers to the issue and New Zealand contact details are:

ANZ 0800 269 476 or www.anz.co.nz/ipo
Bank of New Zealand 0800 722 723
Forsyth Barr 0800 367 227
Goldman Sachs 0800 555 555

Investors should contact the Joint Lead Managers or their financial advisor to request a copy of the Investment Statement or secure an allocation of the Bonds.*

Application has been made to NZX for permission to list the APN Media Bonds and all the requirements of NZX relating thereto that can be complied with on or before the date of distribution of this announcement have been duly complied with. However, the APN Media Bonds have not yet been approved for trading and NZX accepts no responsibility for any statement in this announcement. NZX is a registered exchange, regulated under the Securities Markets Act 1988.

* Applications for APN Media Bonds can only be made using the application form included in the Investment Statement. No applications for APN Media Bonds will be accepted or money received unless the subscriber has received the Investment Statement for the offer. The minimum application amount in respect of the APN Media Bonds is $5,000 and in multiples of $1,000 thereafter.

ENDS

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