Mighty River Power raises $100m in wholesale bond issues to repay debt
Mighty River Power, the first state-owned enterprise slated for a partial sale this quarter, has raised $100 million from institutional investors in two wholesale bond issues to repay debt.
The electricity generator and retailer sold $75 million of six-year bonds paying annual interest of 5.029 percent and $25 million of 10-year bonds paying 5.793 percent annually, it says in a statement.
The bonds are part of a refinancing programme and the proceeds will be used for general corporate purposes. As at December 31, MRP held $305.7 million of debt coming due in the next 12 months and $727 million of non-current loans.
"The issue was taken up by a broad range of local institutional investors and we're delighted with the continued support for MightyRiverPower from the domestic debt market," chief financial officer William Meek says.
"The success of the bond issue will lengthen our debt maturity profile to more than five years following the company's repayment of its retail bond in May 2013."
Bank of New Zealand was the sole lead arranger for the bond issue.