Refinancing of $700m debt funding complete

MEDIA RELEASE: 5 March 2007

Meridian Energy completes refinancing of $700 million debt funding facilities

Meridian Energy has refinanced its bank-provided debt funding facilities to the value of $700 million through the retirement of existing facilities, and the establishment of new ones, Chief Financial Officer Paul Smart said today.

He said the refinancing was undertaken primarily as a result of a review of Meridian Energy’s optimal capital structure post the sale of its highly successful investment in Southern Hydro, and the subsequent return of $1.1 billion in dividends to the New Zealand government.

“A secondary aim of the refinancing was to ensure that Meridian Energy is ideally placed to fund and execute its extensive programme of future renewable energy-based developments designed to meet the growing electricity needs of New Zealand’s business and residential sectors.”

Mr Smart said the refinancing process was undertaken through a competitive tender process with the majority of the major commercial, domestic and international banks operating in New Zealand invited to participate.

“The final relationship banking group which comprises six members - ANZ National Bank, Bank of New Zealand, Commonwealth Bank of Australia, Citibank, Deutsche Bank and Westpac - represents an ideal mix of experience which will allow Meridian Energy to realise its financial aspirations in both the domestic and international markets.

“Key outcomes for Meridian Energy from the refinancing are a significant improvement in terms and conditions, and a reduction in the ongoing funding costs. The process also served to illustrate the commitment and enthusiasm of the relationship banking group to helping us achieve our goals.”

ENDS

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