Infratil to close bond offer 4 months early, mulls another issue
Dec. 22 (BusinessDesk) – Infratil Ltd. said it will close an offer of 2016 bonds in January, four months earlier than planned, due to strong demand and is mulling a further issue of 2017 debt.
The Wellington-based investment group expects to sell $75 million to $100 million of June 15, 2016, bonds paying a coupon of 8.5%. When the offer was announced last month, Infratil had envisaged $50 million with up to $25 million of oversubscriptions and the ability for holders of its 2011 debt to exchange the securities for the 2016 bonds.
If Infratil proceeds with an offer of June 15, 2017, bonds they will likely have the same coupon of 8.5%, the company said.
Infratil retains the right to redeem the debt before maturity and on the maturity date it can either redeem the debt for cash or exchange them for ordinary shares.
Shares of Infratil rose 0.5% to $1.93 and have gained about 21% this year.