Trustpower Limited (Trustpower) announced today that it is offering up to $75,000,000 unsecured, unsubordinated, re-setting, fixed rate bonds (Bonds) to New Zealand institutional and retail investors, with the ability to accept up to $25,000,000 of oversubscriptions at Trustpower’s discretion. Please refer to the Indicative Terms Sheet for the key terms of the offer. A summary of the terms is below:

This is an institutional-type bond offer (there will be no bond application form, firm interest is required by email).

Summarised details of the 2029 bond offer are below:

Issuer:                         Trustpower Limited.

Description:                Unsecured, unsubordinated, re-setting fixed rate bonds.

Maturity Date:             Thursday, 22 February 2029.

Issue Amount:            Trustpower is offering up to NZ $75,000,000 with the ability to accept oversubscriptions of up to $25,000,000 at Trustpower's discretion. 

Interest Rate:               The rate of interest payable on the bonds will be, the initial interest rate for the first five year period; and the reset interest rate for the second five year period. The initial interest rate will be the sum of the Issue Margin and the Base Rate on the Rate Set Date, but in any case will be no less than the minimum Interest Rate of 3.95% per annum. 

The interest rate will be reset on the Reset Date. The reset interest rate will be the sum of the Issue Margin and the Base Rate on the Reset Date. The minimum interest rate is only applicable to the initial interest rate and is not relevant to the calculation of the reset interest rate.

Issue Price:                   $1.00 per bond.

Listing:                           Application has been made to NZX to quote the Bonds on the NZX Debt Market, ticker code TPW170.                  

Credit rating:                 The bonds are not rated.

Brokerage:                     No Brokerage payable by investors.

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

Important Dates 

Opening Date:             Monday, 11 February 2019

Closing Date:              Bids due by 12pm, Friday, 15 February 2019

Rate Set Date:             Friday, 15 February 2019

Issue & Allotment:      Friday, 22 February 2019

Reset Date:                  Thursday, 22 February 2024

Quotation                     Expected to be 25 February 2019

If you wish to bid through us, you must read the term sheet and please advise your firm interest by no later than 5.00 P.M. Thursday, 14th February 2019.

Term Sheet

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 bonds. No money is sought at this point.

Please note the allocation may be scaled depending on availability.