BUSINESSDESK: Infratil, the Wellington-based investment company, is considering a new six-year bond as $57.4 million in debt matures next month.
The company is looking at an unsecured, unsubordinated fixed interest bond from a fresh offer and rolling over investments in notes that mature in November, it says.
The funds raised will be used to refinance the 2012 infrastructure bonds and for general corporate purposes, it says.
Infratil will not convert the 2012 bond into shares in the company. Rather, it will redeem the notes for cash or roll them over into the new investment.
Disclosure documents are expected to be released this week and Infratil is seeking preliminary interest in the offer, it says.
Shares in Infratil rose 0.5% to $2.18 in trading today. The 2012 notes, which pay annual interest of 7.75%, last traded at $101.354 per $100 face value, indicating a yield of 7.5%.