Powerco yesterday announced it was offering a series of fixed-term, fixed rate, unsecured, guaranteed bonds of NZ$200 million, with over-subscriptions of up to a further NZ$50 million, to be used to refinance a portion of existing bank funding that was borrowed to finance the purchase of gas and electricity lines assets from UNL in November 2002.
Company chairman Barry Upson said the proposed AAA rated offer would open to New Zealand resident investors on Friday, March 5, with investors being offered a choice of three tranches (7-years, 9-years and 11¼-years) with the minimum investment amount for each tranche being $5000 and multiples of $1000 thereafter.
"This guaranteed bond issue will extend Powerco’s maturity profile to the medium-term and will enable Powerco to manage its refinancing risk at levels which are consistent with those approved by Powerco’s board," added Upson.
Powerco is New Zealand’s largest gas reticulator and second largest electricity distributor, as well as having a growing energy services contracting business based in southeast Queensland and being responsible for the construction of Tasmania’s first gas distribution network.
