Contact Energy is seeking up to $250 million through a five-year retail bond offer it says will pay investors annual interest of up to 6%.
The electricity generator and retailer says the fixed rate, unsecured, unsubordinated bonds are expected to pay interest of between 5.80% and 6%. It's looking to raise $200 million and up to another $50 million in oversubscriptions with proceeds to be used to repay bonds issued in 2009 bonds and for "general corporate purposes."
"Contact currently has approximately $534 million of bonds on issue maturing on 15 May 2014. Existing investors in the 2009 Bonds will be given the opportunity to reinvest in the 2014 Bonds on a one-for-one basis via an Exchange Offer and to apply for further 2014 Bonds. New investors will also be able to apply for 2014 Bonds via a General Offer," Contact says.
"Existing Bondholders who exchange their 2009 Bonds will still receive the final interest payment that would have been paid on their 2009 Bonds on 15 May 2014 at the current rate applying to these bonds of 8.00% per annum."
The offer opens on February 26, with the exchange offer expected to close on March 13 and the General Offer on March 20.
Contact says it has applied to NZX to have the bonds listed on its debt market.
See key terms of the offer below
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