Contact sets minimum interest on 30-year bonds at 8%
Contact Energy says the minimum annual interest it will pay on the up to $250 million of 30-year capital bonds it plans to issue will be 8%.
Friday, November 25th 2011, 10:20AM
by Jenny Ruth
The rate will be set on December 16 at the higher of 8% or 4.55 percentage points above the five-year swap rate.
Contact says $175 million of the issue has been reserved for clients of participants in the bookbuild which set the interest rate and margin and that the remaining $75 million is open to the public on a first in, first served basis.
The bonds, which rank behind Contact's other debt, $2.46 billion at June 30, but ahead of equity, $3.24 billion at June 30, will mature on February 15, 2042 but are likely to be redeemed in February 2017. They are expected to be rated "BB-" by Standard & Poor's.
The offer is set to close on December 15.
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