Vector bondholders have another two-month to wait

Monday 2nd June 2003

Vector's capital bond-holders may find out by the end of next month whether the company is going to proceed with a partial privatisaion, The NZ Herald reports.

Vector raised $307 million last September and sweetened the capital note offer by promising investors either priority rights to any share issue, or, it the issue doesn't proceed, an extra 1.50% interest on their bonds.

It said that if the float does not happen before September 30, then the interest rate on the bonds will increase from 8.25% to 9.75%.

Vector, which is New Zealand's largest power lines company, is owned by its customers through the elected Auckland Energy Consumer Trust.

Vector chairman Michael Stiassny says no commitment had been made to an initial public offering or listing.

The issue had been discussed at a board meeting last week, the Herald reports, and it intends to finalise a position with the trust in the next two months.

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