Powerco taps U.S. private market to refinance bank debt
By Paul McBeth
May 19 (BusinessDesk) – Powerco Ltd., the country’s second-biggest electricity utility, is tapping institutional
investors in the U.S. to refinance bank debt.
The New Plymouth-based company has priced a US$245 million private placement to refinance a bank facility falling due in
September. The bonds have terms of nine, 12, and 15 years, and lengthen the company’s average maturity profile to 5.5
years from 2.7 years.
Chief executive Nigel Barbour said the issue included investors who participated in the company’s 2003 private placement
as well as brought in new investors.
The power company’s has four securities listed on the NZX’s debt market. The $130 million of bond maturing next year
last traded at $1.02 in the dollar on May 10.
The $100 million of 2013 bonds last traded at $1.02 in the dollar on April 11, while the $50 million of 2015 bonds
traded today at $1.04 in the dollar.
Powerco’s $50 million of bonds maturing in 2017 last traded at $1.01 in the dollar on Feb. 25.
(BusinessDesk)