Z Energy looks at second bond issue

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

Petrol station chain Z Energy, owned by Infratil and the NZ Super Fund, is considering a second bond issue due to “overwhelming demand” for its current retail bond offering. 



Z Energy recently announced that demand for its retail bonds, which have an interest rate of 7.25% and mature in 2018, had been exceptionally strong and oversubscriptions of NZ$50 million were to be accepted, taking the issue size to NZ$150 million. 



Z Energy chief executive Mike Bennetts said that even at NZ$150 million, a number of investors were going to miss out, prompting the company to look closely at the possibility of opening an additional offer.

“We’ve been very pleased with the strong support for our company from New Zealand investors and with the very strong demand for our bonds.

“Based on the clear appetite from retail investors to invest further in Z Energy, we are discussing the possibility of opening another bond offer to satisfy this demand.”



Mr Bennetts said while no decision had been made, the company was discussing the possibility of issuing a new bond maturing September 2019.

He said Z Energy would make a decision over the coming week.



“On the back of the current successful issue, another bond issue would further retire bank debt, increase funding flexibility and extend the average maturity of its existing debt portfolio." 


This article is tagged with the following keywords. Find out more about MyNBR Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

bwahaha, good luck... 7.25%? crikey I'd need atleast double that if they wanted any of my money...

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7589 0.0028 0.37%
AUD 0.9705 0.0040 0.41%
EUR 0.6854 0.0093 1.38%
GBP 0.4973 0.0053 1.08%
HKD 5.8844 0.0215 0.37%
JPY 90.8460 0.3870 0.43%

Commods

Commodity Price Change Time
Gold Index 1204.4 -3.330 2015-03-03T00:
Oil Brent 61.8 -0.340 2015-03-03T00:
Oil Nymex 50.4 0.840 2015-03-03T00:
Silver Index 16.3 -0.155 2015-03-03T00:

Indices

Symbol Open High Last %
NZX 50 5893.7 5893.7 5893.7 -0.33%
NASDAQ 4961.2 4973.3 4979.9 -0.24%
DAX 11317.2 11390.4 11280.4 0.98%
DJI 18282.0 18282.0 18288.6 -0.47%
FTSE 6889.1 6919.2 6889.1 0.44%
HKSE 24656.9 24706.0 24702.8 -0.96%
NI225 18716.8 18732.7 18815.2 -0.59%