PLEASE NOTE: 

We have been advised this afternoon that the bookbuild process on these NZR Notes closes at 10 am on Thursday, 29th November 2018.

We, therefore, need firm interest to be confirmed to us no later than 5.00 PM Wednesday, 28th November 2018.

New Zealand Refining Company Limited 

15-year Unsecured, Subordinated Notes

The New Zealand Refining Company Limited (NZR) announces an offer of up to $75 million of unsecured subordinated fixed rate notes to New Zealand retail investors and certain institutional investors. Refining NZ is New Zealand's only oil refinery and supplies 70% of the country's refined fuel products.  Refining NZ also owns and operates the multi-product pipeline that supplies petrol, diesel and jet fuel to Auckland.  Refining NZ is listed on the NZX with a market capitalisation of approximately $735 million. The Offer is expected to open on Friday, 30 November 2018 and close on Wednesday, 12 December 2018 at 5pm (New Zealand time). The Notes are expected to be quoted on the NZX Debt Market. An announcement of the interest rate for the Subordinated Notes for the initial period will be made following a bookbuild process, which is expected to be completed on Thursday, 29 November 2018.

Summarised details of the offers are below:

Issuer:                         New Zealand Refining Company Limited

Description:                Unsecured, subordinated notes.

Maturity Date:             1 March 2034

Size:                             Up to $75,000,000

Interest Rate:              The initial interest rate will be set as the sum of the swap rate

                                     (for the period from the issue date to 1 March 2024) plus the

                                     issue margin, subject to a minimum interest rate of 5.10% p.a. 

                                        The indicative issue margin has been set at 2.50% to 2.80% p.a. 

                                     The Subordinated Notes will pay a fixed rate of interest until the

                                     first Election Date. The Interest Rate may change following an

                                     Election Date to a new rate as notified in an Election Process Notice. 

Interest Payments:     Subject to the below, semi-annually in arrear on 1 March and

                                     1 September each year (or if that day is not a Business Day, the next

                                      Business Day) until and including the Maturity Date, with the First

                                      Interest Payment Date being 1 March 2019. The first (short) interest

                                      payment will be made to the initial subscriber. 

Early bird interest:      Early bird interest will be paid on application money received in

                                      respect of accepted applications. It will not be paid if application

                                      monies are returned to you for any reason. It will be paid as soon

                                      as practicable, and, in any event, within five Business Days of the

                                      Issue Date.

Quotation:                   Application has been made to NZX for permission to quote

                                     the Subordinated Notes on the NZX Debt Market and all the

                                     requirements of NZX relating to that quotation that can be complied

                                     with on or before the date of distribution of this PDS have been duly

                                     complied with.

NZX ticker code:         NZR010 has been reserved for the Subordinated Notes.

Credit rating:                No credit rating

Brokerage:                  No brokerage payable by investors.

Minimum Application:$5,000 and in multiples of $1,000 thereafter.

 

Important Dates 

Bookbuild:           29 November 2018.

Opening Date:     30 November 2018.

Closing Date:      12 December 2018.

Election Date:     5 years (1 March 2024) and 10 years (1 March 2029) from the

                              First Interest Payment Date.

Issue Date:          14 December 2018.

Quotation:           17 December 2018.

If you wish to bid through us, you must read the Product Disclosure Statement and please advise your firm interest by no later than 5.00 PM Wednesday, 28th November 2018.

 

PRODUCT DISCLOSURE STATEMENT

 

We strongly recommend you discuss with your adviser at Equity Investment Advisers Ltd to ensure you understand the terms and conditions.

If this offer is of interest to you please register your interest  below so that we can contact you

Expression of Interest click here

Registering your interest does not have any obligation to purchase these notes. No money is sought at this point.

Please note the allocation may be scaled depending on availability.