UNL bond success

By Phil Boeyen, ShareChat Business News Editor

Monday 2nd April 2001

Network infrastructure company UnitedNetworks (NZSE: UNL) says it has achieved widespread distribution of its $175 million bond issue.

The proceeds of the six-year bonds, which have a coupon rate of 6.5%, will be used to repay existing bank debt in New Zealand.

UnitedNetworks CFO, Ian Hadwin says both retail and institutional investors took up the offer.

"This success was due to the bonds carrying the highest possible credit rating available to investors while also offering an attractive yield."

The bonds are rated triple-A by ratings agencies Moody's and Standard and Poor's/

The issue was arranged by Westpac Institutional Bank, which says it has been the largest bond issue in the domestic capital markets for eighteen months.

UnitedNetworks says the issue will enable it to secure long term financing to match its asset base and reduces potential refinancing risk for the company.

UNL distributes electricity to around 30% of the country's electricity consumers, gas to over 50% of New Zealand's gas consumers and owns and manages fibre optic networks in the Auckland and Wellington central business districts.

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