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- Release Date: 06/06/14 16:27
- Summary: GENERAL: MRP: Mighty River Power confirms $250m Capital Bond offer
- Price Sensitive: No
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MRP
06/06/2014 16:27
GENERAL
REL: 1627 HRS Mighty River Power Limited (NS)
GENERAL: MRP: Mighty River Power confirms $250m Capital Bond offer
Mighty River Power has today confirmed an offer to the New Zealand public of
up to $250 million of unsecured subordinated Capital Bonds, with an option to
accept up to an additional $50 million of oversubscriptions.
Confirming the details of the offer, Chief Financial Officer William Meek
said the Capital Bonds are expected to be quoted on the NZX Debt Market and
have a BB+ issue credit rating from Standard & Poor's. The Minimum Interest
Rate for the first five years will be set following a bookbuild process and
announced by the opening date of the offer, which is expected to be 18 June
2014. The Minimum Interest Rate is expected to be in the range of 6.8 - 7.0%.
In making this offer, the Mighty River Power board views the Capital Bonds as
an ongoing and valuable component of the Company's capital structure. The
proceeds from the offer will be used for general corporate purposes including
the repayment of bank debt and extending the average term of Mighty River
Power's funding profile.
The Capital Bonds have a maturity date of 11 July 2044 but may be redeemed by
the Company from 11 July 2019 or earlier under certain circumstances. The
Company expects Standard & Poor's will assign intermediate equity content to
the Capital Bonds - treating 50% of the principal and interest as equity for
credit rating purposes - for up to 10 years.
Recognising that there would be demand from Mighty River Power shareholders
and the public who may not have a broker relationship, Mr Meek said the offer
would include a public pool with preference given to shareholders if scaling
is required.
Applications for the Capital Bonds can only be made using the form included
in the Simplified Disclosure Prospectus.
Interested investors should contact one of the Joint Lead Managers to the
offer (listed below) or an Authorised Financial adviser to request a free
copy of the Simplified Disclosure Prospectus. Alternatively the Simplified
Disclosure Prospectus can be viewed on www.mrpcapitalbonds.co.nz.
Contact information for the Joint Lead Managers:
o Forsyth Barr 0800 367 227
o ANZ 0800 269 476
o Deutsche Craigs 0800 226 263
o Goldman Sachs 0800 555 555
The proposed issue of Capital Bonds does not require shareholder approval.
Attached are a Simplified Disclosure Prospectus and shareholder letter that
have been released by Mighty River Power today in connection with its Capital
Bond offer.
End CA:00251312 For:MRP Type:GENERAL Time:2014-06-06 16:27:45
