The capital bonds offer opened November and is only available to New Zealand investors. According to a company statement, it “is being undertaken as part of an ongoing process to review and adjust BSPG’s capital structure, reflecting the company’s strong operating and financial performance over recent years.”

Blue Star Print Group chairman, Tom Sturgess, says that funds raised by the bond offering are expected to be used to repay BSPG’s senior debt and also potentially the company’s existing Subordinated Bonds. “Over the longer term, however, BSPG may use the funds to pursue future growth opportunities and potentially pay dividends on, or redeem some of its Redeemable Preference Shares.

“BSPG has a history of steady earnings growth. For the 2005 financial year BSPG had a turnover of NZ$368m and EBITDA of NZ$51m (including net abnormal gains of NZ$4.9m). Over the last three years revenues and adjusted EBITDA have grown at compound annual growth rates of 7.9 per cent and 10.4 per cent respectively,” says Sturgess.

Headquartered in Auckland, BSPG comprises three major divisions and a labels business, whose CEOs report to BSPG managing director, Keith Brodie. Operating within BSPG are 15 separately branded business units.

The major divisions are Webstar (Webstar Australia and Webstar New Zealand, headed up by Noel Rogers), Blue Star Print New Zealand (headed up by Glen Climo and including Format, McCollams, Nicholsons, PrintLink, Secura Copy, BSP Integrated Solutions and BSP Logistics) and Blue Star Print Australia (headed up by Geoff Selig and including Link Printing, Kings, Craftsman, BSP Integrated Solutions and BSP Logistics). Rapid Labels operates in the self-adhesive market on both sides of the Tasman.

BSPG employs over 1200 staff and over the past four years and is privately owned with senior management participation.

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