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
Most listened to
- Michael Wigley replies to the “veteran lawyer” dissing submissions to the Commerce Commission opposing the merger
- Ebos CEO Patrick Davies on what acquisitions the company is looking for
- MYOB CEO on share prices, escrow and subscriber growth
- In his Editor’s Insight, Nevil Gibson suggests a new job for Helen Clark after her UN failure
- Privacy Commissioner John Edwards on Dominos drone delivery challenges