Second Bond Issue for Mighty River Power
Mighty River Power is to make a new offer into the Fixed Rate Domestic Bond market for $100 million, with the right to
accept over-subscriptions of up to $50 million.
The Bonds will be for a period of approximately eight years, with Mighty River Power having the option to make early
repayment in September 2006.
This issue follows a similar issue in May for up to $200 million, an offer that was heavily oversubscribed.
“The support for that first offer and the opportunity to further lengthen our average debt maturity profile and
diversify our debt portfolio encouraged us to go ahead with a second bond issue,” says Mighty River Power Chief
Executive, Doug Heffernan.
This bond issue, together with the initial issue, will ensure the company’s core debt requirements are met through
secure longer term facilities. Existing shorter term facilities will provide flexibility for the company to respond to
profitable investment opportunities.
The interest rate to be paid on the unsecured, unsubordinated Bonds until September 2006 is expected to be set on 22
August 2003. If Mighty River Power elects not to repay the Fixed Rate Domestic Bonds in September 2006, the interest
rate will be reset at that time for the period until the Maturity Date of 15 September 2011.
The minimum application will be for $5,000 with multiples of $1,000 over the minimum. This offer is expected to open on
25 August and close on 12 September 2003. Credit rating Agency Standard & Poor’s have assigned a preliminary BBB long term rating to the issue.
Confirmation of the rating is expected on the final pricing and execution of the documents. Details of the offer are
contained in the Investment Statement and the Registered Prospectus dated 7 August 2003.
Potential investors may, from the opening date, obtain a copy of the Investment Statement and the Registered Prospectus
from their financial advisors or Mighty River Power’s website at www.mightyriverpower.co.nz. The Investment Statement
can also be requested on 0800 22 00 10.
Deutsche Bank and National Bank of New Zealand are Joint Lead Managers for the issue.