TrustPower considers $100m bond issue
TrustPower (NZX: TPW) is considering a bond issue of up to $100m in a bid to repay debt and boost its maturity profile.
In a statement to NZX today, the electricity generator said it intends to offer up to $75m in senior bonds with the option to accept up to $25m in oversubscriptions at TrustPower’s discretion.
The senior bonds will have a term of about seven years, maturing on 15 December 2017.
A fixed interest rate, to be paid quarterly, will be determined before full details are released and the offer opens – expected in the week starting 20 September 2010.
It is expected that bond key terms and conditions will be the same as previously issued senior bonds in December 2009 and January 2010.
ANZ National Bank and Forsyth Barr have been appointed joint lead manager for the proposed issue.
TrustPower, majority owned by Infratil, currently has 315m shares on issue, in addition to $263m in subordinated bonds maturing between September 2012 and December 2015, and $140 million worth of senior bonds maturing between December 2014 and December 2016.
The company in May announced a move to buy back up to two million shares by the end of October to take advantage of price volatility.
Shares have fluctuated between $7.10 and $7.30 since the announcement, at the middle of a $7.06 to $7.60 range experienced over the last year.