Contact increases 30-year bond issue to a maximum $250 million
Last week, the electricity retailer and generator said it was planning to issue $150 million of unsecured, subordinated capital banks and that it appointed Craigs Investment Partners as arranger and joint lead manager with the ANZ and ASB banks and Forsyth Barr and that Westpac was appointed co-manager.
It didn't provide any other details but today's statement shows, as expected, the bonds have been structured to count as 100% equity for ratings purposes for their first five years.
The bonds will mature on February 15, 2042 but are likely to be redeemed in February 2017 because they will then lose their 100% equity classification and because the annual coupon will increase by 0.25% at every five-year reset.
Contact and its advisers will set the coupon at an unspecified margin above the five-year swap rate on November 22, the day before the offer opens, but it says it will be at least 8%.
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