Meridian Energy is offering up to $200 million in seven-year unsecured, unsubordinated fixed rate bonds to institutional and New Zealand retail investors.
The bonds have a maturity date of June 27, 2025, and the indicative margin for the Bonds is 1.30-to-1.40 percent per annum, subject to a minimum interest rate of 4.20 percent per annum. The margin and interest rate will be set following a bookbuild process on June 15, it said.
The offer opens today and will close June 15, following the bookbuild process, with bonds expected to be issued June 27.
The retail bond issue proceeds will be used for general corporate purposes including the partial re-finance of Meridian’s bank bridge facility used for the recent acquisition of hydro assets in Australia, it said in an investor presentation.
There is no public pool for the bonds, which will be reserved for the clients of ANZ Bank New Zealand, Westpac Banking Corp (acting through its New Zealand branch), Deutsche Craigs, Forsyth Barr and NZX participants.
The bonds are expected to be quoted on the NZX Debt Market and have a long-term credit rating of BBB+ from S&P Global Ratings.
Meridian shares last traded at $3.14 and have lifted 9.4 percent over the past year.