Meridian Energy Announces $US400m Pvte. Placement
Media Release For immediate release: Thursday, 13 May 2004
MERIDIAN ENERGY ANNOUNCES $US400m PRIVATE PLACEMENT
State owned power company Meridian Energy has just completed a major issue of $US400M of unsecured notes into the US Private Placement Market.
Meridian's issue comprises four tranches with maturities spanning eight to fifteen years with an all inclusive average cost of funds of 92 basis points above floating BKBM.
The proceeds of the issue have been swapped into New Zealand dollars and have been used by Meridian in a reorganisation of its existing borrowings, allowing for the repayment of the $A500M short term bridge loan facility used to fund its acquisition of Southern Hydro. Meridian's Director of Finance and Information, Neil Cochrane said that Meridian was delighted with the reception it received from the US market, noting that the placement was over subscribed and that as a result Meridian had been able to refinance its Southern Hydro bridge acquisition funding on favourable terms.
The placement has increased the average maturity of the company's debt structure and has diversified Meridian's sources of long term funding.
Bank of America securities LLC and Westpac Institutional Bank acted as agents for Meridian's private placement.