Z Energy considers six-year bond offer, expected to open next week

Z Energy considers six-year bond offer. Photo: John Sefton

Z Energy is considering a six-year, unsubordinated, secured, fixed rate bond offer just as $150 million of existing notes are due to be repaid.

The offer to New Zealand institutional and retail investors is expected to open next week, the Wellington-based company said in a statement. Z Energy did not specify how much it wanted to raise and said it expects to announce the full details when the offer opens "which is expected to be in the week beginning Aug. 20." The bonds are expected to be quoted on the NZX Debt Market.

Z Energy currently has four retail bond issues quoted on the NZX Debt Market, providing $505 million of funding. The four issues include $150 million maturing Aug. 15 with a coupon of 7.25 percent, which last traded at a yield of 3.5 percent.

The transport fuels company appointed Deutsche Craigs, Forsyth Barr and Westpac Banking Corp as joint lead managers. Westpac is also the organising participant in relation to the proposed offer, it said.

Z Energy shares last traded at $7.28 and have lost 6 percent over the past 12 months.