The NZX yesterday said that 75 million unsecured, subordinated, perpetual debt securities (Sparcs), with a nominal value of NZ$1.00 each and an interest rate of 8.5% per annum, had been issued. These represented 31.84% of the total class of Prime securities issued, being 235.521 million.

Three weeks ago Prime Infrastructure said it had agreed to offer to a limited number of institutions an amount of Prime Infrastructure NZ Sparcs.

Sparcs flew in the proposed Prime takeover of Powerco late last year, with some media commentators describing the securities as “junk bonds” and Powerco’s directors recommending shareholders register overseas to avoid part payment in the Sparcs that independent assessor Grant Samuel said might be worth less than par value.

But once Powerco major shareholders - New Plymouth District Council, Taranaki Electricity Trust and Powerco Wanganui Trust - had sold their combined 53.65% stake, others quickly followed and Prime successfully completed its takeover of this country’s largest gas reticulator and second largest electricity distributor.