Infratil Infrastructure Bonds

29 April 2013 Infratil Infrastructure Bonds 6.85% p.a. due June 2022

Infratil announces that the above offer of unsecured unsubordinated Infrastructure Bonds is now open.

Infratil is offering up to $25 million of Infrastructure Bonds to all investors in New Zealand (with the option to accept up to $75 million oversubscriptions at Infratil's discretion). There is to be a public pool with applications processed on a first come first served basis until Infratil chooses to close the issue or the issue is filled. The offer is now open and the simplified disclosure prospectus is available free of charge or from the managers.

The Managers of the offer are:

Forsyth Barr 0800 367 227 www.forsythbarr.co.nz
ANZ Bank New Zealand Limited 0800 269 476 www.anz.co.nz/ipo
Westpac Institutional Bank 0800 601 901

Application has been made to NZX for permission to list the Infrastructure Bonds on the NZX Debt Market and all the requirements of NZX relating thereto that can be complied with on or before the date of this announcement have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement. NZX Debt Market is a registered market operated by NZX Limited which is a registered exchange, regulated under the Securities Markets Act 1988. 

23 April 2013 Amended Opening Date for offer of Infratil Infrastructure Bonds 6.85% p.a. due June 2022

In light of the proposals for electricity sector reform announced by the Labour and Green parties on 18 April 2013, Infratil will amend the simplified disclosure prospectus for the offer of unsecured unsubordinated Infrastructure Bonds that was registered on 15 April 2013.

Although the prospectus discloses changes in the regulatory environment as one of the principal risks of an investment in Infrastructure Bonds, the amendment will include additional information about the Labour-Green proposals so that prospective bond investors can consider that additional information in their decision making.

Accordingly, the Opening Date for the offer, which was to be today 23 April 2013, will be deferred until after the amendment has been filed. Infratil will announce the new Opening Date when the amendment has been filed.

15 April 2013  Infratil Infrastructure Bonds 6.85% p.a. due June 2022

Infratil has registered a simplified disclosure prospectus for an offer of unsecured unsubordinated Infrastructure Bonds.

The managers of the offer are:

ANZ Bank New Zealand Limited 0800 269 476 www.anz.co.nz/ipo
Forsyth Barr 0800 367 227 www.forsythbarr.co.nz
Westpac Institutional Bank 0800 601 901

Infratil is offering up to $25 million of Infrastructure Bonds to all investors in New Zealand (with the option to accept up to $75 million oversubscriptions at Infratil's discretion).

There is to be a public pool with applications processed on a first come first served basis until Infratil chooses to close the issue or the issue is filled. Accordingly, investors are encouraged to submit applications forms as soon as possible.

The offer will open on or around Tuesday the 23rd April 2013, and the simplified disclosure prospectus will be available free of charge on Infratil's website http://www.infratil.com/for-investors/infratil-infrastructure-bonds or from the managers from this date. The offer will close on 27th June 2013 unless Infratil (in its absolute discretion) chooses to close the offer early.

Application has been made to NZX for permission to list the Infrastructure Bonds on the NZX Debt Market and all the requirements of NZX relating thereto that can be complied with on or before the date of this announcement have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement. NZX Debt Market is a registered market operated by NZX Limited which is a registered exchange, regulated under the Securities Markets Act 1988.

Since 1999 Infratil has undertaken 12 issues of Infrastructure Bonds, or which 8 remain outstanding. The Bonds are unsecured debt obligations of Infratil Limited.  As at 30 September 2012  total outstanding issuance amounted to $858.6million.

Frequently Asked Questions

• What are Infratil Infrastructure Bonds?

  The Infratil Infrastructure Bonds are unsecured, unsubordinated fixed rate debt obligations of Infratil Limited. 

  
  

  The Bonds are listed and all the requirements of NZX have been duly complied with but NZX accepts no responsibility for any statement made by Infratil.

• What are the maturities, yields and quantities of Bonds on issue?

  NZDX code and Maturity	Face Value on Issue	Coupon (all payable quarterly)
  IFT 060 15 Sep 2013	$85,276,395	8.5% per annum
  IFT 070 15 Nov 2015	$152,835,700	8.5% per annum
  IFT 150 15 Jun 2016	$100,000,000	8.5% per annum
  IFT 160 15 Jun 2017	$66,284,621	8.5% per annum
  IFT 170 15 Nov 2017	$81,111,500	8.0% per annum
  IFT 180 15 Nov 2018	$111,417,500	6.85% per annum
  IFT 090 15 Feb 2020	$80,497,600	8.5% per annum
  IFTHA Perpetual	$235,143,200	The coupon rate is reset every 15 November  at 1.5% over the then one year Bank Base Rate

• What are the Perpetual Infratil Infrastructure Bonds?

  Perpetual Infratil Infrastructure Bonds (PIIBs), are unsecured bonds which do not have a maturity date. In other words, Infratil has no obligation to repay them. This means that, similar to a share, if a Bondholder wishes to cash up their investment they must sell the PIIBs. Infratil Bonds trade on the NZX. For further background to the Piibs please click here

• Can I trade (buy or sell) Infratil Infrastructure Bonds? What is the price?

  All of the Infratil Bonds are listed on the NZX and most trade on a regular basis. Mainly however investors hold to maturity so trading is much less than for Infratil’s shares.

  This website has bids/offers and the last price of listed bonds, including all those issued by Infratil.

  As of October 2012 the market yield on most Infratil maturity bonds is between 6.0% to 6,8%.

  For instance the Bond maturing November 2015 was issued with a coupon of 8.5%pa and is now trading at a yield of about 6% in the scondary market. This  means that someone buying the bond would be required to pay about $106 to purchase per $100 face value of bond.

  The secondary market price tends to reflect the number of buyers and sellers and will tend to fluctuate over time.

• What happens on the maturity of Infratil Bonds?

  Because the Bonds are convertible debt obligations (with the exception as noted above of the Perpetuals and the new issue) Infratil has the right to either repay the Bonds with cash or to redeem the Bonds by issuing Infratil shares. In certain situations (which are detailed in the Investment Statements and Prospectus) Bondholders may demand redemption for shares.

  
  

  In the past four of the Infratil Bonds have matured and in each case they have been repaid for cash.

• What does Infratil use Bond funding for?

  Infratil has issued twelve series of Bonds (four have been repaid) and there have been different factors behind each. The first issue in 1999 was of approximately $66 million and was used to purchase an interest in Wellington International Airport. Other issues have similarly been invested in assets Infratil has acquired.

• What are my rights as a Bondholder?

  The Bondholders' rights are set out in the Investment Statement. However as there are technicalities and complexities in some of the terminology contained in this description it is a good idea to talk with a professional adviser such as a broker or financial planner. The Bonds are not subordinated, but in certain situations Bondholders may not have priority claims to the assets owned by Infratil.

• Do Infratil Infrastructure Bonds have voting rights?

  Not usually. In certain extraordinary situations the holders of each class of Bonds may vote on matters that effect them.

• How do I obtain a copy of the Infratil Infrastructure Bonds Investment Statement or Prospectus for a particular Infrastructure Bond?

  To download PDF copies of the Infratil's Infrastructure Bond Investment Statements/Flyers right click on the links below:

   

  Bond Maturity	Offer Opened
  15 Nov 2018	17 Oct 2012	click here (2MB)
  15 June 2017	21 Jan 2011	click here (2MB) Offer closed 14 April 2011
  15 June 2016	26 Nov 2010	click here (2MB) Offer closed 26 January 2011
  15 Nov 2011	17 Dec 2001	click here (1MB) Offer closed 3 January 2002
  Perpetuals	17 Nov 2006	click here (3MB) Offer closed 30 April 2007
  15 Feb 2020	20 Dec 2005	click here (2MB) Offer closed 2 June 2006
  15 Nov 2015	10 Dec 2004	click here (1.7MB) Offer closed 4 February 2005
  15 Sep 2013	22 Aug 2003	click here (775KB) Offer closed 11 March 2004
  15 Nov 2012	26 Aug 2005	click here (1.7MB) Offer closed 7 October 2005
  15 Nov 2011	17 Dec 2001	click here (1MB) Offer closed 3 January 2002

   

  Infratil Infrastructure Bonds Prospectus 2004 right click here (PDF 2MB).

  Infratil Infrastructure Bonds Prospectus August 2005 right click here (PDF 3MB).

  Infratil Infrastructure Bonds Prospectus December 2005 right click here (PDF 6MB).

  Infratil Infrastructure Bonds Prospectus November 2006 right click here (PDF 5MB).

  Infratil Infrastructure Bonds Simplified Prospectus November 2010 right click here (PDF 2MB).

  Infratil Infrastructure Bonds Simplified Prospectus November 2011 right click here (PDF 2MB).

• How do I obtain a copy of the Infratil Infrastructure Bonds Trust Deed?

  Infratil Infrastructure Bonds Trust Deed 11 November 1999 

  Infratil Infrastructure Bonds Trust Deed Amendment dated 14 August 2003 

  Infratil Infrastructure Bonds Second Amending Trust Deed 15 November 2006 
  Infratil Infrastructure Bonds Third Amending Trust Deed  27 September 2012

  This is a reference document only and the original documentation should always be checked.

  "Conformed" Trust Deed incorporating all amendments to the original 11 November 1999 Trust Deed 2012

   

   

• Who is the Trustee of the Infratil Infrastructure Bonds?

   

  The Trustee is Trustees Executors Limited, Level 1 50 Customhouse Quay, Wellington. Telephone : 04 495 0999.

   

• What is the Trustee’s monitoring role with regards to Infratil compliance with Bond covenants and terms?

  The terms of Infratil’s Bonds are set out in their individual prospectus and trust deeds (and summarised in the relevant Investment Statement). Each six months Infratil provides the Trustee with a certificate signed by directors confirming its position relative to the Bond covenants and with regards to general compliance with Bond terms. Infratil has always recorded conformity. Bondholders are welcome to contact the Trustee to confirm Infratil’s compliance.

• What are the contact details of brokers who trade Infratil Infrastructure Bonds?

  ANZ NEW ZEALAND SECURITIES LIMITED
  Level 7, 1 Victoria Street Wellington Free Phone (New Zealand): 0800 800 372	Contact: David Speight Email: david.speight@anzsecurities.co.nz
  CRAIGS INVESTMENT PARTNERS
  Craigs Investment Partners House 158 Cameron Road Tauranga Freephone (New Zealand): 0800 272 442	Contact: Email: headoffice@craigsip.com
  FIRST NZ CAPITAL SECURITIES
  Level 39, ANZ Centre 23-29 Albert Street, Auckland  Free Phone (New Zealand): 0800 805 584	Contact: Jo Hikaka Email: jo.hikaka@fnzc.co.nz
  FORSYTH BARR
  Level 21, Vodafone on the Quay 157 Lambton Quay Wellington Free Phone (New Zealand): 0800 367 227	Contact: Max Brown Email: max.brown@forsythbarr.co.nz
  MCDOUALL STUART SECURITIES
  Level 6, The Bayleys Building Wellington Free Phone (New Zealand):0800 577 777	Contact: Andrew McDouall Email: andrew.mcdouall@mcdouallstuart.co.nz
  WESTPAC BANKING CORPORATION, NZ BRANCH
  PO Box 934, Auckland 1010 Free Phone (New Zealand):0800 942 822	Contact: Matt Plowman Email: matt_plowman@westpac.co.nz