Channel Infrastructure announces Bond Offer

Thursday 28th April 2022

Channel Infrastructure is offering up to $100 million (with the ability to accept oversubscriptions of up to an additional $25 million at Channel Infrastructure’s discretion) of 5 year, unsecured, unsubordinated, fixed rate bonds maturing on 20 May 2027 ("Bonds") to investors resident in New Zealand and institutional investors. There is no public pool for the Bonds, with all of the Bonds under the Offer being reserved for clients of the joint lead managers and other approved financial intermediaries.

The transition to Channel Infrastructure on 1 April 2022 with its ownership of critical infrastructure and long-term contracts represents a fundamental reset in our business and financial risk profile. The net proceeds from this offer are to be applied towards repaying a portion of Channel Infrastructure’s existing bank debt and will also provide diversification of funding that aligns with an infrastructure business.

The offer is expected to open on Friday, 6 May 2022 and to close on Friday, 13 May 2022 at 11am (New Zealand time). The interest rate is expected to be set following a bookbuild process and announced to the market on or about 13 May 2022. Channel Infrastructure has appointed Bank of New Zealand (“BNZ”) and Forsyth Barr Limited (“Forsyth Barr”) as joint arrangers, and BNZ, Forsyth Barr and Jarden Partners Limited, as joint lead managers in relation to the offer.

This offer is being made in accordance with the Financial Markets Conduct Act 2013 and the Bonds are expected to be quoted on the NZX Debt Market. Details of the offer are contained in the product disclosure statement (“PDS”) which was lodged with the Registrar of Financial Service Providers today, 28 April 2022. The PDS is available on www.channelnz.com/investor-centre/bonds or by contacting a joint lead manager and must be obtained by investors before they decide to acquire any Bonds.

Copies of the PDS, Channel Infrastructure’s investor presentation and indicative terms sheet are also attached and available through www.channelnz.com/investor-centre/bonds.

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