Infratil seeks up to $100m in nine-year bond offer
A public pool will be open on a first-come, first-served basis, with the offer opening on April 23 and closing on June 27.
Infratil, the listed infrastructure investor, is seeking up to $100 million in a nine-year infrastructure bond offer, which it plans to put toward "general corporate purposes".
The Wellington-based firm is seeking $25 million in an unsecured, unsubordinated bond offer open to all investors and will take up to $75 million in oversubscriptions, Infratil says in a statement.
A public pool will be open on a first-come, first-served basis, with the offer opening on April 23 and closing on June 27.
The notes will pay annual interest of 6.85 percent, a lower coupon than the 8 percent and 8.5 percent rates offered in its existing listed bonds. The bonds will mature in June 2022.
"Bonds represent the majority of Infratil's borrowing and, while they may have a higher interest rate than bank borrowing, they provide longer term funding than is available from banks, enabling Infratil to better manage and extend the maturity profile," chairman David Newman says in the simplified disclosure statement.
"Paying a little more for longer-term funding is consistent with Infratil's approach to avoiding and mitigating risks."
Last month, Infratil chief executive Marko Bogoievski signalled a 10-year bond was one way for the firm to fill its coffers as it looks for new early-stage investment opportunities.
The firm is also looking at selling down and listing its stake in petrol station chain Z Energy and reducing its stake in a major Australian windfarm.
Infratil's shares rose 0.2 percent to $2.385 in trading today and have gained 4.9 percent this year.
(BusinessDesk)
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Infratil seeks up to $100m in nine-year bond offer
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