Contact Energy says the coupon on its 2042 bonds will be a minimum 8 per cent, at least matching the rate on its existing 2014 bonds traded on the NZDX market.
The offer of $150 million plus oversubscriptions of $25 million has been reserved for clients of participants in the bookbuild process who have received firm allocations, Contact says.
It also plans a public pool on a first in, first served basis, bringing the total that could be sold to$250 million.
Contact has the right to reset the interest rate and redeem the bonds on February 15, 2017, at a "step-up margin", which is the margin plus an annual step-up percentage of 0.25 per cent.
The unsecured bonds have a face value of $1. The initial interest rate will be set on December 16 and will be the higher of the minimum 8 per cent rate and the 4.55 per cent margin over the benchmark rate.
Contact sets minimum of 8pc on 2042 bonds
Photo / File
AdvertisementAdvertise with NZME.
