By Phil Boeyen, ShareChat Business News Editor
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Friday 3rd May 2002 |
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Chairman, Barry Upson, says the Powerco board has approved an interest rate for the period up to the first Election Date in May 2007 of the higher of 8.4%, or the interpolated 5 year Government Stock rate, plus a margin of 1.65%.
Powerco says Standard & Poor's has rated the capital bonds with a 'BBB' credit rating while the company keeps its long-term credit rating of 'A-'. Interest on the capital bonds will be paid quarterly in arrears.
ABN Amro Rothschild and ABN Amro Craigs are lead managers for the issue, which will be launched on May 6 and close on May 29.
A $5 million shareholder and bondholder priority pool is available, with the $95 million balance subscribed for by way of firm allocations to member firms of the NZ Stock Exchange.
Mr Upson says the capital raising would be used to refinance an existing short-term bank facility. The existing arrangements were utilised to purchase the Porirua and Hutt Valley gas distribution networks from AGL in July last year.
Powerco is New Zealand's third largest electricity and gas network utility with around 205,000 customers throughout the central and southern North Island.
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