Telecom gains approval from bondholders

Photo / Greg Bowker

Telecom has gained approval from holders of two issues of British pound-denominated bonds to exchange the securities for notes in its Chorus network business once the company is split in two.

Consent was required because the demerger may have resulted in a default event under the terms of the bonds trust deed.

The Auckland-based company said it had consent from the required 75 per cent of the holders of its £125 million of 2018 notes and £150 million of 2020 notes to exchange the debt for Chorus bonds maturing in 2020.

Bond holder consent is one part of the approvals process for Telecom, whose shareholders are to vote on the plan at their annual meeting in October.