Tower bond offer fully subscribed

A $25 million preferential pool for Tower shareholders closed a fortnight ago and the remaining $100 million of notes on offer closed on Friday with allocations for NZSE member firm clients and other financial intermediaries.

Tower has set the interest rate through to the first election date at 8.75%, which is equivalent to the Government Bond Rate, plus a margin of 2%.

MD James Boonzaier says there was strong demand for the bonds and the company is pleased with the outcome.

Tower plans to use the proceeds of the capital bond offer to rebalance its capital structure, repay existing debt, and fund continued expansion in Australasia.

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