Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Powerco Raises US$175 Million in US Debt Market

Powerco Raises US$175 Million in US Debt Market

Energy utility company Powerco announced today that it has raised US$175 million in a private placement of 11-13 year term senior debt to US institutional investors.

Powerco Chief Executive, Steven Boulton, said that the placement was oversubscribed and was issued on attractive terms and reflects the confidence that US investors have in Powerco’s outlook and strategy.

Mr Boulton stated that this financing was a very positive outcome for Powerco, which doubled in size with the acquisition of electricity and gas network assets from UnitedNetworks Limited late last year.

Mr Boulton said that the US placement does not increase Powerco’s existing level of debt but will replace some of the Company’s existing senior bank funding facilities, which were raised for the acquisition of the UnitedNetworks assets last year. The US financing is part of the lengthening of Powerco’s debt maturity profile following that acquisition. Powerco is in the process of reducing reliance on short-term borrowing to a more prudent mix of medium and long-term borrowing.

Mr Boulton said that the notes were fully swapped back into NZD. The financing has enabled the Company to diversify its funding sources into different markets, which offer longer maturity profiles.

Mr Boulton indicated that the Company was also looking to refinance in the near future some of the remaining acquisition funding raised last year with a further domestic issue of medium term notes in New Zealand.

International credit rating agency, Standard & Poor’s, acknowledged the benefits to Powerco of diversifying its funding sources and securing long term debt, when it affirmed Powerco’s strong BBB+/A2 credit rating in August 2003.

Note: The placement was jointly managed by Merrill Lynch and Commonwealth Bank of Australia.

Powerco is New Zealand’s largest gas distribution company and second largest electricity lines company. It has approximately 400,000 gas and electricity consumer connections in the central and lower North Island. Powerco is a publicly listed company, and is included in the NZX50.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO: