Air New Zealand says it's seeking to borrow $75 million through a six-year bond issue that will pay investors annual interest of at least 4.10%.
The offer, to New Zealand retail and institutional investors, is of unsecured, unsubordinated, fixed rate bonds maturing on October 28, 2022. The Bonds are expected to be quoted on the NZX Debt Market.
The interest rate will be announced following a bookbuild process, expected to be on October 20. A margin between 1.75% and 1.85% over swap has been set. The bonds have a Baa2 credit rating from Moody's.
"Air New Zealand has agreed that the interest rate will not be less than 4.10% per annum," Air New Zealand says.
Air New Zealand says money raised will be for "general business purposes" including partial repayment of an existing bond issue. The airline currently has a five-year, $150 million bond on issue that's paying interest of 6.90%. It's due to mature on November 15. That issue was the airline's first bond offer in 20-years.
Summary terms
Full details are available in this indicative terms sheet and there's an Air New Zealand presentation here.
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