Telecom is building a new environmentally-friendly base in central Wellington.
The company has committed to 19,000sq m of space in a new inner city office block, which is to be built in Willis St, near its intersection with Lambton Quay.
The Auckland-based telco expects to relocate 1700 employees
from six separate sites, into the new building in mid-2011, it has told the stock exchange. No financial details were disclosed.
"We are committed to Wellington and having a purpose-built campus will maximise future operational efficiencies," chief executive officer Paul Reynolds said.
Property developer The Wellington Co will build and own two adjacent buildings, linked by an atrium, comprising 26,000sq m of office space. The buildings will be environmentally sustainable with solar panels and energy-efficient lighting.
Meanwhile, Telecom Corp, said it was selling $100 million of bonds, called TeleBonds, to retail investors.
The offer has the option of an additional $200 million in oversubscriptions.
The notes, issued by TCNZ Finance and guaranteed by Telecom, offer three maturities of three-, five- and seven-years.
The three-year piece, maturing on June 15, 2011, will pay a coupon of 8.25 per cent, the 5-year piece due on June 15, 2013, will pay 8.5 per cent and the seven-year piece due on June 15, 2015, will pay 8.65 per cent.
Telecom has received subscriptions worth $55 million and will keep the offer open until December 15. Most of the interest is for the five- and seven-year maturities because of their higher coupons, according to sole lead First NZ.
The proceeds will fund general business activities.
Telecom, which used to regularly sell TeleBonds before switching its focus on wholesale bonds, also sold early July a four-year note issue of 200 million swiss francs ($257.33 million) paying a coupon of 4.375 per cent.
The offer, arranged by ABN Amro, was predominantly placed with institutional investors.
- AGENCIES
