TrustPower sets interest rate of 6.75% on 7-year bonds
By Hannah Lynch
Aug. 9 (BusinessDesk) - TrustPower, the utility controlled by Infratil, has set a 6.75 percent interest rate on its seven- year bonds, which it is issuing to help repay maturing bonds and for working capital.
In May, the electricity generator and retailer flagged its intention to repay maturing bonds by offering investors the opportunity to roll over the debt in combination with a retail offer.
TrustPower today opened its unsecured, subordinate, Sept. 15, 2019 bond offer of $75 million of the debt and a $75 million exchange offer for holders of its Sept. 14, 2012, bonds.
The general offer will remain open to Sept. 11 and the exchange offer till Aug. 29.
The 2012 bonds pay annual interest of 8.5 percent, and traded yesterday at a yield of 5.4 percent on the NZDX.
The stock last traded at $7.73 and has gained 9 percent so far this year.