Ann: LISTING: TPW: Subordinated Bond Offer Opens

• Release Date: 09/08/12 10:30
• Summary: LISTING: TPW: Subordinated Bond Offer Opens and Interest Rate Set
• Price Sensitive: No
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TPW
09/08/2012 08:30
LISTING

REL: 0830 HRS TrustPower Limited

LISTING: TPW: Subordinated Bond Offer Opens and Interest Rate Set

Market Announcement

Thursday 9 August 2012

TrustPower Subordinated Bond Offer Opens and Interest Rate Set

TrustPower Limited ("TrustPower") has today opened an offer of unsecured,
subordinated, fixed rate bonds ("Bonds") providing investors with a new
opportunity to invest in a majority New Zealand-owned renewable electricity
generation and retailing business.  The offer consists of:

o a general offer ("General Offer") of up to $75 million (with the option to
accept up to an additional $50 million of oversubscriptions) to members of
the public resident in New Zealand; and
o an exchange offer ("Exchange Offer") of up to $75 million to the holders of
TrustPower bonds maturing 14 September 2012 who are resident in New Zealand.
The Exchange Offer is expected to remain open until 29 August 2012 (or such
other date as TrustPower may determine) and the General Offer is expected to
remain open until 11 September 2012 (or such other date as TrustPower may
determine).

A simplified disclosure prospectus ("Simplified Disclosure Prospectus") in
respect of the offer was registered on 26 July 2012.

TrustPower advises that the offer has been very well received by market
participants and investors, and that $72.5 million of Bonds under the General
Offer have been reserved by TrustPower for clients of market participants
under firm allocations.

A further $2.5 million of Bonds will be available to members of the public
under the General Offer on a first come, first served basis. Due to the high
level of demand, a cap of $25,000 per application will be applied by
TrustPower for such applications.

The Bonds will have an interest rate of 6.75% per annum and will mature on 15
September 2019, unless redeemed earlier.

The Bonds are unsecured, subordinated fixed rate debt obligations of
TrustPower, ranking ahead of holders of shares of TrustPower, equally with
all other existing subordinated obligations and behind all secured creditors,
all creditors preferred by law and all unsubordinated unsecured creditors.
The funds raised from the issue of Bonds will be used by TrustPower for the
repayment of bonds maturing 14 September 2012 where the redemption proceeds
of such bonds are not reinvested in Bonds under the Exchange Offer and for
general corporate purposes.

Except for the first interest payment, interest will be paid quarterly in
arrears.  The first interest payment date is 15 December 2012. Bonds issued
under the General Offer will accrue interest from the date on which
subscription moneys are banked into the offer trust account.  Bonds issued
under the Exchange Offer will accrue interest from 15 September 2012.  The
first interest payment is paid to the first registered holder on 15 December
2012, regardless of any subsequent transfer.

Forsyth Barr Limited has been appointed Arranger and Organising Participant
to the offer, and Forsyth Barr Limited, ANZ and Craigs Investment Partners
Limited have been appointed as Joint Lead Managers.
No applications for Bonds will be accepted or money received unless the
subscriber has received the Simplified Disclosure Prospectus for the offer.
Investors may contact the Joint Lead Managers, Computershare Investor
Services or their usual financial advisor to request a copy of the Simplified
Disclosure Prospectus.
o Forsyth Barr:    0800 367 227  www.forsythbarr.co.nz
o ANZ:   0800 269 476  www.anz.co.nz/ipo
o Craigs Investment Partners: 0800 226 263  www.craigsip.com
o Computershare Investor Services: 0800 080 276
The Simplified Disclosure Prospectus is also available on TrustPower's
website: www.trustpower.co.nz/Investor Centre/Key Investor Information/Bond
Issue.
Applications for Bonds can only be made using the application form included
in the Simplified Disclosure Prospectus.
Application has been made to NZX for permission to quote the Bonds on the NZX
Debt Market and all the requirements of NZX relating thereto that can be
complied with on or before the date of distribution of this announcement have
been duly complied with.  However, NZX accepts no responsibility for any
statement in this announcement.  NZX is a registered exchange, and the NZX
Debt Market is a registered market operated by NZX, each regulated under the
Securities Markets Act 1988.
End CA:00225758 For:TPW    Type:LISTING    Time:2012-08-09 08:30:18