Infrastructure company Downer EDI Limited announced a NZ$100 million retail bond issue on Wednesday with the ability to accept NZ$50 million in oversubscriptions. The bonds, called 'Works Bonds', are three year, fixed rate, unsubordinated, unsecured debt securities that will expire on September 15, 2012. The bonds will offer a fixed quarterly interest payment, with the interest rate to be determined on June 25. The bonds are expected to start trading on July 1. "The proceeds of the Offer will be used to repay existing debt on maturity and for other general corporate purposes of the Downer Group," Downer said. "Downer, which carries an investment grade Issuer Default Rating of BBB- (stable outlook) from Fitch Ratings, guarantees Works Bonds on an unsubordinated, unsecured basis, along with other members of the Downer Group who are Guarantors from time to time in accordance with the supplemental trust deed." UBS, ANZ, Forsyth Barr Limited and Westpac Institutional Bank will be the Joint Lead Managers for the offer and BNZ Capital will be the Co-Manager. UBS has also been appointed as the Structuring Adviser for the offer. The offer is only being made to New Zealand resident retail and institutional investors. Downer EDI Limited is listed on the Australian Stock Exchange. We have contacted Downer to ask how the bonds will be priced. We are also going to ask for an interview with the CEO. We are interested in what you would like to know about the bonds and the company in particular.
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