13 February 2017

Contact Energy launches public bond offer

Contact Energy Limited (“Contact”) announced today that it has opened an offer of up to $75 million of unsecured, unsubordinated fixed rate bonds (“Bonds”) to institutional investors and New Zealand retail investors, with the ability to accept up to a further $25 million in oversubscriptions. The proceeds from the issue of the Bonds will be used for the refinancing of a $100m bond maturing on 13 April 2017 and for general corporate purposes. 
The offer will be made pursuant to the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as existing quoted debt securities. The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX. 
The full details of the offer are contained in the terms sheet, a copy of which is also attached. 
The Bonds have a maturity date of 15 November 2022 and are expected to be quoted on the NZX Debt Market. They have an investment grade issue credit rating of BBB from Standard & Poor's. Contact’s current corporate credit rating from Standard & Poor’s is BBB (stable). 
The indicative issue margin range is 1.50% - 1.65% p.a. The issue margin and interest rate for the Bonds will be set following a bookbuild process on 17 February 2017 and announced via NZX shortly thereafter. The offer will close on 17 February 2017 following the bookbuild process, with the Bonds expected to be issued on 23 February 2017. 
Investors interested in the offer should contact Forsyth Barr Limited or Westpac Banking Corporation (acting through its New Zealand branch) (the Joint Lead Managers), Deutsche Craigs Limited (the CoManager) or their usual financial advisor to obtain details of how Bonds may be acquired. There will be no public pool for the Bonds. 
Joint Lead Managers   Forsyth Barr Limited