Ann: GENERAL: VCT040: Vector Limited Capital Bond

• Release Date: 03/05/12 11:00
• Summary: GENERAL: VCT040: Vector Limited Capital Bonds - Election Notice
• Price Sensitive: No
• Download Document  4.25KB

					

VCT
03/05/2012 09:00
GENERAL

REL: 0900 HRS Vector Limited

GENERAL: VCT040: Vector Limited Capital Bonds - Election Notice

Vector Limited has issued Capital Bonds (VCT040) subject to the terms of the
trust deed dated 25 September 2002 (as amended) (Trust Deed).  Under the
Trust Deed, each bondholder is entitled to make an election to keep or sell
some or all of its Capital Bonds on each Election Date.  The next election
date is 15 June 2012.

Vector Limited advises that today it will post an Election Notice and
explanatory notes to the registered address of each holder of Capital Bonds
whose name appeared on the register on 30 April 2012.  Copies of the Election
Notice and explanatory notes are attached.

From the Election Date of 15 June 2012, the Capital Bonds will be subject to
new conditions, including a new election date of 15 June 2017 and a new
interest rate of not less than 7.00 per cent. per annum.

In addition, as set out in the attached explanatory notes, it has come to
Vector's attention that the description of the adjusted interest rate
contained in the explanatory notes for the 2006 election process may not have
been clearly reflected in the existing conditions of the Capital Bonds for
the purposes of future election processes.

The adjusted interest rate is the interest rate payable by Vector in the
event Vector fails to give an election notice on an election date or if any
Capital Bonds offered for sale through the resale facility established by
Vector in relation to future election processes are not sold or redeemed by
Vector.

Vector has therefore decided to amend the adjusted interest rate in the new
conditions to ensure that the new conditions reflect the same formulation
that was described to bondholders in the explanatory notes for the 2006
election process (see attached explanatory notes for further detail).

The election options available to New Zealand bondholders are to:

o keep all of their Capital Bonds; or
o keep all of their Capital Bonds and apply to purchase additional Capital
Bonds through the resale facility to be established by Vector Limited as part
of the election process; or
o offer to sell some of their Capital Bonds through the Resale Facility and
keep the balance of their Capital Bonds; or
o offer to sell all of their Capital Bonds through the Resale Facility.
If a bondholder holds Capital Bonds through a registered address outside New
Zealand on 31 May 2012, all of that bondholder's Capital Bonds will be
automatically offered for sale in the Resale Facility.

Vector has decided that it will, subject to being satisfied it can comply
with its obligations under the Replacement Security Deed Poll, purchase or
redeem any Capital Bonds which remain unsold in the Resale Facility
immediately prior to 15 June 2012.  A summary of the terms of the Replacement
Security Deed Poll between Vector and the Trustee of the Capital Bonds was
set out in the explanatory notes relating to the 2006 election process, a
copy of which is available at
www.vector.co.nz/corporate/investor-relations/bonds or by calling the bond
registrar.

New Zealand bondholders have until 5.00pm on Thursday, 31 May 2012 to advise
their election.  If a bondholder does not return a correctly completed
Election Notice to Vector Limited and the bondholder's registered address is
in New Zealand, that bondholder will be deemed to have elected to keep all of
its Capital Bonds subject to the new conditions.
Registered holders of Capital Bonds on 31 May 2012 will be entitled to
receive all interest accrued, un-cancelled and unpaid up to 15 June 2012.

END

About Vector

Vector is New Zealand's leading multi-network infrastructure company which
delivers energy and communication services to more than one million homes and
businesses across the country.

The company owns and manages a unique portfolio which consists of electricity
distribution, gas transmission and distribution, electricity and gas metering
installations and data management services, natural gas and LPG and fibre
optic networks.

Vector is listed on the New Zealand Stock Exchange with ticker symbol VCT.
Our majority shareholder, with voting rights of 75.4%, is the Auckland Energy
Consumer Trust (AECT).

For further information, visit www.vector.co.nz
End CA:00222502 For:VCT    Type:GENERAL    Time:2012-05-03 09:00:25