Powerco today confirmed that it intends to issue up to $100 million of capital bonds to New Zealand investors.
The capital bonds will be used to refinance its acquisition of the Hutt Valley & Porirua Basin gas networks, which were purchased by Powerco in July 2001.
"Issue of the capital bonds is
subject to the approval of Powerco shareholders, and we plan to call a special meeting of shareholders on 3 May 2002 to seek their approval for the issue," Powerco Chairman Barry Upson said.
Mr Upson said Powerco expects that the capital bonds will be offered to investors in early May, subject to shareholder approval for the issue.
Mr Upson also advised that Powerco has asked Standard & Poor's to review its credit rating on the basis that the capital bond issue is approved by shareholders. Standard and Poor's have also been asked to assess the proposed terms of the capital bond for a credit rating for the proposed issue.
ABN AMRO Rothschild and ABN AMRO Craigs have been appointed as joint lead managers to assist Powerco with the proposed capital bond issue.
Powerco expects to release its audited financial results for the year ended March 31, 2002 in mid April.
Powerco is New Zealand's third largest electricity and gas utility with about 205,000 customer connections. Powerco has networks in Taranaki, Wanganui, Manawatu, Wairarapa and Wellington with an asset base approaching $875 million.
