Tuesday 7th February 2017 |
Text too small? |
Contact Energy, which last year said it would focus on reducing debt, is considering a $100 million offer of bonds it plans to list on the NZX debt market.
Wellington-based Contact plans to sell $75 million of unsecured, unsubordinated five-year bonds to institutional and retail investors, with oversubscriptions of up to $25 million, it said in a statement. Details for the offer will be released next week.
New Zealand's five-year swap rate fell 9 basis points to 2.96 percent, while Contact shares were recently unchanged at $4.78.
Forsyth Barr and Westpac Banking Corp have been appointed joint lead managers and Deutsche Craigs as co-manager.
Last October, Contact chairman Ralph Norris told shareholders the electricity generator and retailer would focus on repaying debt over the next 12-to-18 months, having returned about $847 million to shareholders in the two prior years.
The power company has two tranches of listed debt on the NZX, with $150 million of bonds paying a coupon 4.4 percent maturing in November 2021 and $222 million of notes paying annual interest of 5.8 percent maturing in May 2019. The 2021 notes recently traded at a yield of 4.37 percent and the 2019 bonds were recently at 3.58 percent.
BusinessDesk.co.nz
No comments yet
Contact secures gas supply
MCK - MARKET UPDATE ON RESPONSE TO CDLHHNZ TAKEOVER NOTICE
January 22nd Morning Report
ATM - 1H25 Results Announcement Date and Webcast Notification
MCK RECEIVES TAKEOVER OFFER FROM CDLHHNZ
PHL - Senior Manager Change
Steel & Tube 1H25 Interim Results to be announced on 24 Feb
January 20th Morning Report
KPG - Changes to the Kiwi Property Board
IKE - Timing of Quarterly Performance Update and Conference Call