TrustPower to use NZ$100 mln from bonds to repay bank debt & lengthen debt maturities

TrustPower to use NZ$100 mln from bonds to repay bank debt & lengthen debt maturities

TrustPower says it wants to raise up to NZ$100 million through a fixed-rate, seven year retail bond issue.

The Tauranga-based electricity generator and retailer, 50.5% owned by Wellington-based infrastructure investor Infratil and 33% by the Tauranga Energy Consumer Trust, said the money raised would be used for general corporate purposes including repayment of debt, and lengthening the maturity profile of total debt facilities.

TrustPower has appointed ANZ National Bank and Forsyth Barr as joint lead managers of the issue. The company plans to offer up to NZ$75 million worth of senior bonds with the option to accept up to another NZ$25 million worth through oversubscriptions.

The bonds will have a term of about seven years, maturing on December 15, 2017.

"A fixed interest rate for the Senior Bonds will be determined prior to the opening of the offer following a bookbuild process to be undertaken by the Joint Lead Managers. Interest will be paid on a quarterly basis," TrustPower said.

The bonds will be direct, unsecured, unsubordinated debt obligations of TrustPower ranking "pari passu" with existing bank debt and senior bonds, the company added, noting the key terms and conditions of the bonds would be the same as those for senior bonds it issued in December 2009 and January 2010.

Full details of the offer should be released when the offer opens in the week starting September 20, 2010, once a prospectus is registered.

As of March 31 TrustPower had NZ$429 million of undrawn bank debt facilities which the company said gave it satisfactory funding capacity to commit to new projects when conditions support investment. TrustPower also raised NZ$140 million from issuing senior bonds during the March year.

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