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Powerco taps U.S. market to refinance bank debt

Powerco taps U.S. private market to refinance bank debt

By Paul McBeth

May 19 (BusinessDesk) – Powerco Ltd., the country’s second-biggest electricity utility, is tapping institutional investors in the U.S. to refinance bank debt.

The New Plymouth-based company has priced a US$245 million private placement to refinance a bank facility falling due in September. The bonds have terms of nine, 12, and 15 years, and lengthen the company’s average maturity profile to 5.5 years from 2.7 years.

Chief executive Nigel Barbour said the issue included investors who participated in the company’s 2003 private placement as well as brought in new investors.

The power company’s has four securities listed on the NZX’s debt market. The $130 million of bond maturing next year last traded at $1.02 in the dollar on May 10.

The $100 million of 2013 bonds last traded at $1.02 in the dollar on April 11, while the $50 million of 2015 bonds traded today at $1.04 in the dollar.

Powerco’s $50 million of bonds maturing in 2017 last traded at $1.01 in the dollar on Feb. 25.

(BusinessDesk)

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