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Successful completion of bookbuild for MRP Capital Bond offe

NEWS RELEASE

17 June 2014

Successful completion of bookbuild for MRP Capital Bond offer

Mighty River Power today announced the successful completion of the bookbuild process for its Capital Bond offer and a minimum interest rate set at 6.80%.

Chief Financial Officer, William Meek, said the bookbuild was well supported and $280 million of unsecured subordinated Capital Bonds have been reserved for clients of participants in the bookbuild process who received firm allocations.

Recognising that some New Zealanders will not have a broking relationship, Mighty River Power has made the balance of the offer ($20 million) available to a public pool. Preference in the public pool will be given to existing shareholders if scaling is required.

The minimum interest rate in the first five years for the Capital Bonds has been set at 6.80% per annum and the initial margin is 2.25% per annum. The interest rate until the first reset date will be set on 9 July 2014 as the higher of the:
• minimum interest rate (6.80%); or
• five year swap rate plus the initial margin.

The offer opens tomorrow and closes on Tuesday 8 July 2014 at 5pm and is only available to New Zealand residents. Successful applicants will be paid ‘early bird’ interest at the interest rate from the date their application monies are banked to the issue date. This interest will be paid as soon as practicable following the issue date.

Applications for Capital Bonds must be made using the form included in the Simplified Disclosure Prospectus. Interested investors should contact one of the Joint Lead Managers to the offer (listed below) or an Authorised Financial Advisor to request a free copy of the Simplified Disclosure Prospectus, which can also be viewed on www.mrpcapitalbonds.co.nz

Forsyth Barr 0800 367 227
ANZ 0800 269 476
Deutsche Craigs 0800 226 263
Goldman Sachs 0800 555 555

ENDS

All applicants will need to complete the application form that accompanies the Simplified Disclosure Prospectus. You should read the whole of the Simplified Disclosure Prospectus before deciding whether to apply for the Capital Bonds.

Application has been made to NZX for permission to quote the Capital Bonds on the NZX Debt Market and all the requirements of NZX relating thereto that can be complied with on or before the date of this announcement have been duly complied with. However, the Capital Bonds have not yet been approved for trading and the NZX accepts no responsibility for any statement in this announcement. The NZX Debt Market is a registered market operated by NZX, which is a registered exchange, regulated under the Securities Markets Act 1988. NZX has authorised NZX Primary Market Participants to act on the offer. Neither the Crown nor any other persons guarantees the Capital Bonds.

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