Auckland International Airport Bond Issue
Auckland International Airport Limited (AIAL) is planning to make an offer of up to $150 million of seven and ten year fixed rate bonds (“Bonds”) to the public for which only New Zealand wholesale investors and NZX participants will be eligible to apply.
Bank of New Zealand has been appointed as Lead Manager. First NZ Capital has been appointed Organising Participant and a Co-Lead Manager.
The Bonds that AIAL proposes to offer will pay interest semi-annually, with a choice of seven and ten year terms to maturity.
The Bonds will be unsecured, unsubordinated debt obligations, issued under a master trust deed, registered prospectus and investment statement.
It is intended that the prospectus will be registered on 26 October 2005 and that the offer will be open from 31 October to 1 November 2005. The intended issue date is 7 November 2005.
The interest rates payable on each tranche of Bonds will be set at the sum of a set margin and the relevant swap rate and is anticipated to be set on 3 November 2005. AIAL, in conjunction with Bank of New Zealand as Lead Manager, expects to set the margins on the offer opening date by way of NZX announcement.
There will be no public pool and members of the public (including AIAL retail investors) who wish to purchase Bonds will need to register their interest and make arrangements with NZX participants to purchase Bonds from them. Wholesale investors and NZX participants will be required to subscribe for Bonds in their own name in a minimum amount of $100,000.
AIAL has applied to Standard & Poor’s to have the Bonds rated. AIAL’s current long term credit rating from Standard & Poor’s is “A”, with a “Stable” outlook.
Application will be made to NZX for permission to list the Bonds on the NZDX. However, NZX accepts no responsibility for any reference to listing in this statement.
AIAL is seeking preliminary indications of interest for the Bonds. Indications of interest from wholesale investors should be directed to Bank of New Zealand. Indications of interest from NZX participants should be directed to First NZ Capital. Contact details for Bank of New Zealand and First NZ Capital are given below.
No indication of interest will create an obligation or commitment of any kind. No money is currently being sought and no applications for Bonds will be accepted or money received unless the subscriber has received an investment statement.
AIAL will use the proceeds of the intended offer to refinance a portion of the bridge facility arranged with respect to the recent special distribution to shareholders.