Transpower New Zealand Limited is making an offer of up to NZ$150 million (with the ability to accept up to a further NZ$50 million in oversubscriptions) of unsecured, unsubordinated bonds.
BNZ, the lead manager for this issue, was also lead manager for a recently completed Mighty River Power bonds issue, which raised in total $100 million.
Transpower says the money raised from its bonds will be used for general corporate purposes, including the capital expenditure requirements of the Transpower Group.
The bonds are being offered with maturities of March 15, 2023 and March 15, 2028. The Bonds will not be listed on any exchange.
Transpower expects the bonds will be assigned a credit rating of AA- by Standard & Poor’s and A1 by Moody's.
An announcement of the indicative issue margin range will be made on or before the opening date. The opening date is expected to be March 12, 2013.
The indicative issue margin range for the ten year bonds maturing on 15 March 2023 is 1.25% - 1.30% per annum.
The indicative issue margin range for the fifteen year bonds maturing on 15 March 2028 is 1.50% - 1.55% per annum
The final issue margins will be announced following the bookbuild process, expected to be on March 13, 2013. The interest rate on the bonds is expected to be set on the same day.
For an indication of the yield for bonds of a similar rating and maturity that are trading please refer to our daily bond pricing page here.
The minimum subscription for the Transpower bonds is $5000 and in multiples of $1000 thereafter. All applications must be made on the applications forms contained in the prospectus, which can be found here.
For those not interested in wading through the prospectus, "cheat sheets" for each of the maturities being offered can be found here.
It is recommended all potential investors read the prospectus prior to applying for these bonds.
Story updated to include indicative issue margins for both bonds
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