Contact Energy, the biggest listed power company, plans to buy back some of its listed retail bonds paying annual interest of 8 per cent.
The Wellington-based company will buy back some of its $550 million in listed debt using existing cash and available bank facilities, with no minimum or maximum amounts, it said in a statement.
The bonds mature on May 15, 2014, and last traded at $103.634 per $100 face value, a yield of 4 per cent.
Contact has appointed Craigs Investment Partners to bid for the debt on its behalf on the NZX's debt market, and will also purchase the bonds over-the-counter.
The company raised US$240 million in a wholesale bond issue to US investors in June to help refinance the 2014 retail bond, which hadn't been drawn on its June 30 balance date. Contact had $80 million in cash and equivalents at the end of its financial year.
