Support our sponsors:

NZX 50 Index	4611.96	2.40
S&P/ASX 200	5191.20	0.00
Dow Jones Industrials	14839.80	21.00

Twitter

Facebook

RSS

TrustPower looks to raise $125M in bond sale

Wednesday 4th July 2012

Text too small?

TrustPower, the utility controlled by Infratil, wants to raise as much as $125 million of bonds and roll over existing debt to repay maturing bonds and for working capital.

The electricity generator and retailer is considering a $75 million public bond offer, with the ability to accept a further $50 million in oversubscriptions, and will seek to roll over as much as $75 million of debt maturing in September, it said in a statement. The company is seeking early indications of interest before going ahead with the offer.

The proceeds of the issue would go towards repaying $108.6 million of debt coming due on Sept. 14 and for general corporate purposes.

Earlier this week TrustPower committed to covering the full A$465 million cost for the second stage of a South Australian wind farm under development.

Forsyth Barr has been appointed to arrange the issue.

In May, TrustPower flagged its intention to repay the maturing bonds by offering investors the opportunity to roll over the debt in combination with a retail offer.

The 2012 bonds pay annual interest of 8.5 percent, and traded yesterday at a yield of 7 percent, indicating a more expensive trading price than its face value.

The stock fell 0.3 percent to $7.58.

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.