TrustPower plans $75 million offer

Photo / Dean Purcell

TrustPower, the utility controlled by Infratil, wants to raise as much as $125 million of bonds and roll over existing debt to repay maturing bonds and for working capital.

The electricity generator and retailer is considering a $75 million public bond offer, with the ability to accept a further $50 million in oversubscriptions, and will seek to roll over as much as $75 million of debt maturing in September, it said.

The company is seeking early indications of interest before going ahead with the offer.

The proceeds of the issue would go towards repaying $108.6 million of debt coming due on September 14 and for general corporate purposes.

Earlier this week TrustPower committed to covering the full A$465 million ($595 million) cost for the second stage of a South Australian wind farm under development.

Forsyth Barr has been appointed to arrange the issue.

In May, TrustPower flagged its intention to repay the maturing bonds by offering investors the opportunity to roll over the debt in combination with a retail offer.

The 2012 bonds pay annual interest of 8.5 per cent, and traded on Tuesday at a yield of 7 per cent. TrustPower's shares closed unchanged yesterday at $7.60.