Infratil Infrastructure Bond Offer Opens

Monday 27th May 2024

Infratil Limited (Infratil) announced today that it has opened an offer of 7½ year unsecured, unsubordinated, fixed rate bonds (New Bonds) to New Zealand investors. The bonds will mature on 17 December 2031.

The offer comprises two separate parts:

A firm offer of up to $75,000,000 of New Bonds (with the ability to accept oversubscriptions at Infratil’s discretion), which will be available to New Zealand clients of the Joint Lead Managers, approved financial intermediaries and other primary market participants invited to participate in the bookbuild process (Firm Offer). The Firm Offer is now open and will close at 11.00am on 30 May 2024.

An exchange offer of up to $56,117,000 of New Bonds under which all New Zealand resident holders of the IFT230 bonds maturing on 15 June 2024 (2024 Bonds) will have the opportunity to exchange some or all of their maturing 2024 Bonds for New Bonds (Exchange Offer). The Exchange Offer will open following the closing of the Firm Offer on 31 May 2024 and close on 12 June 2024. All eligible holders of the 2024 Bonds who submit valid applications will have their applications satisfied in full up to a maximum of the number of 2024 Bonds they hold. There is no ability to apply for additional New Bonds under the Exchange Offer.

The timing of the Exchange Offer is designed to ensure eligible holders of the 2024 Bonds can have certainty on the interest rate applicable to the New Bonds when they elect whether to participate in the Exchange Offer. Eligible applicants can be certain that their application will be satisfied in full up to the amount of their existing investment.

Interest Rate

The Interest Rate for the New Bonds will be the greater of:

the Minimum Interest Rate of 6.75% per annum, and

the sum of the Issue Margin and the Base Rate determined on the Rate Set Date (30 May 2024).

The indicative Issue Margin range for the New Bonds is 2.40% to 2.50% per annum. The Issue Margin will be set following a bookbuild process on 30 May 2024 and will be announced by Infratil via NZX shortly thereafter, together with the Interest Rate. In any case the Interest Rate will not be less than the Minimum Interest Rate of 6.75% per annum.

Full details of the offer, including on the how the Interest Rate for the New Bonds will be calculated, is set out in the Indicative Terms Sheet attached.

The offer is being made as an offer of debt securities of the same class as existing quoted debt securities pursuant to the Financial Markets Conduct Act 2013. The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX. The New Bonds are expected to be quoted on the NZX Debt Market under the ticker code IFT350.

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