CONTACT ENERGY LIMITED 17 February 2017
Contact Energy sets rate on bond offerFollowing the successful bookbuild process for its bond offer, Contact Energy Limited ("Contact") confirmed today that the offer has closed and Contact has accepted NZ$25 million of oversubscriptions (which is 100% of the amount available for oversubscription). As a result NZ$100 million of bonds have been allocated to the participants (or their clients) in the bookbuild process.
The interest rate for the Bonds has been set at 4.63% p.a. This reflects a margin of 1.50%
p.a. over the underlying swap rate. The Bonds will be issued on 23 February 2017 and will mature on 15 November 2022. The Bonds are expected to be quoted on the NZX Debt Market under the ticker code CEN040.
The Bonds have an investment grade issue credit rating of BBB from Standard & Poor's. The full details of the offer are contained in the updated terms sheet which is attached.
ENDSFor further information please contact: Louise Tong
Head of Treasury and Tax 021 444 224
Final Terms Sheet Fixed Rate Bonds Maturing 15 November 2022 17 February 20171
Final Terms Sheet Fixed Rate Bonds Maturing
15 November 2022
17 February 2017 This terms sheet (Terms Sheet) sets out the key terms of the offer by Contact Energy Limited (Contact) of NZ$100,000,000 of unsecured, unsubordinated, fixed rate, interest bearing bonds maturing on 15 November 2022 (Bonds) under its Master Trust Deed dated 23 February 2009 (as amended from time to time) as modified and supplemented by the Supplemental Trust Deed dated 10 February 2017 entered into between Contact and The New Zealand Guardian Trust Company Limited (Supervisor) (together, Trust Documents). Important notice The offer of debt securities by Contact is made in reliance upon the exclusion in clause 19 of schedule 1 of the Financial Markets Conduct Act 2013 (FMCA). The offer contained in this Terms Sheet is an offer of bonds that have identical rights, privileges, limitations and conditions (except for the interest rate and maturity date) as Contact's:
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(the CEN020 Bonds and the CEN030 Bonds, together the Existing Bonds). The Bonds are of the same class as the Existing Bonds for the purposes of the FMCA and the Financial Markets Conduct Regulations 2014 (FMC Regulations). The Issuer is subject to a disclosure obligation that requires it to notify certain material information to NZX Limited (NZX) for the purpose of that information being made available to participants in the market and that information can be found by visiting www.nzx.com/companies/CEN. The Existing Bonds are the only debt securities of Contact that are currently quoted and in the same class as the Bonds. Investors should look to the market price of the Existing Bonds referred to above to find out how the market assesses the returns and risk premium for those bonds. |
ADDRESS DETAILS:
Issuer: Contact Energy Limited Harbour City Tower 29 Brandon Street Wellington 6143 04 499 4011 | Joint Lead Manager & Organising Participant: Forsyth Barr Limited Level 21 157 Lambton Quay Wellington 6011 0800 367 227 | Joint Lead Manager: Westpac Banking Corporation (acting through its New Zealand branch) Level 8 16 Takutai Square Auckland 1010 0800 942 822 | Co-Manager: Deutsche Craigs Limited Level 36, Vero Centre 48 Shortland Street Auckland 1010 0800 226 263 | Registrar: Link Market Services Limited Level 7, Zurich House 21 Queen Street Auckland 1010 09 375 5998 |
2 Contact Energy Bonds - Terms Sheet
Issuer | Contact Energy Limited | ||
Description of Bonds | The Bonds are unsecured, unsubordinated, fixed rate, interest bearing debt obligations of the Issuer ranking equally and without preference among themselves and equally with all other outstanding unsecured and unsubordinated indebtedness of Contact, except indebtedness preferred by law. The Supervisor, on behalf of the Bondholders, has the benefit of certain provisions of the deed of negative pledge and guarantee between Contact and certain of its subsidiaries dated 19 May 2005 (Negative Pledge). Among other things, the Negative Pledge provides that the Issuer will not grant any security interest in its assets except under certain limited exceptions set out in the Negative Pledge. The Bonds are not guaranteed by any person. | ||
Financial Covenants | The ratio of consolidated unsubordinated group debt to consolidated unsubordinated group debt plus shareholders' funds (all as described in the Negative Pledge) must not exceed 60%. | ||
Purpose | The proceeds from the issue of the Bonds will be used for the refinancing of a NZ$100,000,000 bond maturing on 13 April 2017 and for general corporate purposes. | ||
Joint Lead Managers | Forsyth Barr Limited and Westpac Banking Corporation (acting through its New Zealand branch). | ||
Organising Participant | Forsyth Barr Limited | ||
Co-Manager | Deutsche Craigs Limited | ||
Credit Ratings | Standard & Poor's | Issuer Credit Rating BBB (stable) | Issue Credit Rating BBB |
A rating is not a recommendation by any rating organisation to buy, sell or hold Bonds. The above credit ratings are current as at the date of this Terms Sheet and may be subject to suspension, revision or withdrawal at any time by the assigning rating organisation. | |||
Issue Amount | NZ$100,000,000 | ||
Opening Date | 13 February 2017 | ||
Closing Date | 12pm, 17 February 2017 | ||
Rate Set Date | 17 February 2017 | ||
Issue Date | 23 February 2017 | ||
Maturity Date | Tuesday, 15 November 2022 | ||
Issue Margin | 1.50 percent per annum | ||
Interest Rate | 4.63 percent per annum, being the sum of the Base Rate plus the Issue Margin. | ||
Base Rate | The mid-market rate for an interest rate swap of a term matching the period from the Issue Date to the Maturity Date as calculated by the Joint Lead Managers in consultation with the Issuer, according to market convention, with reference to Reuters page 'ICAPKIWISWAP1' on the Rate Set Date and expressed on a quarterly basis (rounded to 2 decimal places, if necessary, with 0.005 being rounded up). | ||
Issue Price | NZ$1.00 per Bond | ||
Contact Energy Ltd. published this content on 17 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 February 2017 04:06:07 UTC.
Original documenthttps://contact.co.nz/cenergymedia/contactenergy/files/pdfs/corporate/cen-sets-rate-on-bond-offer-201702.pdf?la=en
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