Z Energy seeks up to $150m bond offer to repay debt
Z Energy will open the offer on July 18 for $100 million seven-year bonds, with the ability to accept oversubscriptions of up to $50 million, and will close it on August 10.
BUSINESSDESK: Z Energy, the locally-owned downstream fuels supplier, wants to raise as much as $150 million through a retail bond issue to repay debt and general expenses.
The company will open the offer on July 18 for $100 million seven-year bonds, with the ability to accept over-subscriptions of up to $50 million, and will close it on August 10. The sale comes after two successful offers where Z Energy raised almost $300 million.
It is yet to announce the bonds interest rate.
"The net proceeds of the bond issue will be on-lent to Aotea Energy Limited to use to repay currently drawn debt on the “revolving core debt facility, and for the Z Energy Group’s general corporate purposes," the company said in its simplified disclosure prospectus.
Z Energy's $147 million of bonds maturing in 2016 pay an annual interest rate of 7.35$, and last traded at a yield of 5.9%, indicating a more expensive price than the face value of the notes.
Its $150 million of 2018 debt, paying annual interest of 7.25%, last traded at a yield of 6.8%.
The new bonds are senior, secured, fixed-rate obligations of Z Energy, and will rank equally with each other and with existing bonds, the company said. Interest will be paid quarterly, with the first payment scheduled for November 12.
The bonds will be listed on the NZX debt market from August 16.
Z Energy was formerly the downstream business of Shell New Zealand and is now owned 50/50 by Infratil and the New Zealand Superannuation Fund.
Hannah Lynch
Thu, 05 Jul 2012
Thu, 05 Jul 2012
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Z Energy seeks up to $150m bond offer to repay debt
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