Sharechat Logo

Contact Energy considers $100 million retail bond offer

Tuesday 7th February 2017

Text too small?

Contact Energy, which last year said it would focus on reducing debt, is considering a $100 million offer of bonds it plans to list on the NZX debt market.

​Wellington-based Contact plans to sell $75 million of unsecured, unsubordinated five-year bonds to institutional and retail investors, with oversubscriptions of up to $25 million, it said in a statement. Details for the offer will be released next week. 

New Zealand's five-year swap rate fell 9 basis points to 2.96 percent, while Contact shares were recently unchanged at $4.78. 

Forsyth Barr and Westpac Banking Corp have been appointed joint lead managers and Deutsche Craigs as co-manager. 

Last October, Contact chairman Ralph Norris told shareholders the electricity generator and retailer would focus on repaying debt over the next 12-to-18 months, having returned about $847 million to shareholders in the two prior years. 

The power company has two tranches of listed debt on the NZX, with $150 million of bonds paying a coupon 4.4 percent maturing in November 2021 and $222 million of notes paying annual interest of 5.8 percent maturing in May 2019. The 2021 notes recently traded at a yield of 4.37 percent and the 2019 bonds were recently at 3.58 percent. 

BusinessDesk.co.nz



Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.
Bookmark and Share   Printable version
Related News

Why I am backing Tony Falkenstein for the NZX Board - by Brent King
MARKET CLOSE: NZ shares fall; Contact, Trustpower give up gains
NZ dollar steady, markets looking ahead to next week's US data
Restaurant Brands sales to exceed $700 mln in 2018 as KFC market keeps growing, CEO says
NZ construction sector upbeat on infrastructure work, buoyed by govt injection
Vector signs multi-million battery storage deal with Territory Generation in Alice Springs
NZ wool prices fall; crossbred fleece hits lowest level in 7 1/2 years
Restaurant Brands to seek ASX dual-listing
NZ dollar rises after RBNZ maintains stance in latest rates review
While you were sleeping: Health care stocks rise

IRG See IRG research reports