Air New Zealand has priced its five-year bond offer at the bottom of its indicative price range with all NZ$150 million worth snapped up through broking firms meaning there are no bonds left for investors who don't have a firm allocation through a broker.
The national carrier said the interest rate on the unrated, unsecured, unsubordinated fixed rate bonds will be 6.9% per annum, following a bookbuild process. That's the bottom of a 6.90% to 7.20% range as reported by interest.co.nz last Friday . It's Air New Zealand's first bond offer in 20 years. Funds raised through the offer will be used for "general corporate purposes."
The airline confirmed the total value of bonds issued would be NZ$150 million, the maximum amount outlined in its offer, with all of them allocated on a firm allocations basis to primary market participants and institutional investors.
"As a result the offer will not have a public pool, however, a small priority pool of NZ$4 million is available for New Zealand resident Air New Zealand Limited shareholders and New Zealand resident employees of the Air New Zealand Group," Air New Zealand said.
The offer opens on Monday, 5 September and will close on Friday, 23 September. The priority pool closes a week earlier on Friday, 16 September.
First NZ Capital is the offer's arranger and joint lead manager, with Craigs Investment Partners its fellow joint lead manager and ANZ, BNZ and Forsyth Barr co-managers.
Air New Zealand has applied to NZX to have the bonds listed on its debt market.
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