Mighty River raises cash in US

Doug Heffernan. Photo / Paul Estcourt

Mighty River Power has raised US$200 million ($258 million) in the state owned company's inaugural private placement with United States institutional investors.

The proceeds would be used to refinance existing short-term bank debt and would provide long-term funding that strengthened the company's average debt maturity profile from the current 4.9 years to 7.5 years, Mighty River said.

Chief executive Doug Heffernan said the placement provided more diversification of the company's funding sources and offered longer-term funding options than New Zealand.

The private placement includes a combination of 10, 12 and 15-year notes with settlement of the transaction expected in December.

Mighty River operates the Waikato River hydro system, and is increasing its geothermal generation.