Infratil Bond Offer

Infratil Infrastructure Bonds 3.35% p.a. due 15 March 2026


 

22 October 2019

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

Infratil is offering up to $50 million of Infrastructure Bonds in aggregate across both the General and Exchange Offers (as described below), with the option to accept up to $75 million of oversubscriptions in aggregate at Infratil's discretion.

The offer will be made as an offer of debt securities of the same class as existing quoted debt securities pursuant to the Financial Markets Conduct Act 2013. The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX.

The key terms of the offer are contained in the Terms Sheet, a copy of which is attached.

The interest rate for the Infrastructure Bonds due 15 March 2026 ("2026 Bonds") will be fixed at 3.35% p.a. for the full term of the 2026 Bonds. Infratil also has an existing bond offer open in the market being Infratil Infrastructure Bonds due 15 December 2029 ("2029 Bonds").

The offer comprises a General Offer to all investors in New Zealand and an Exchange Offer under which holders of the IFT200 bonds that mature on 15 November 2019 have the opportunity (subject to availability) to exchange some or all of their maturing bonds for 2026 Bonds.  Holders of the IFT200 bonds also have the option (subject to availability) of exchanging some or all of their maturing bonds for 2029 Bonds, as described in the separate offer documents for the 2029 Bonds.

Details on how to apply for the Infrastructure Bonds are set out in the Terms Sheet.  The offer is now open, with the Exchange Offer closing on 8 November 2019 and the General Offer closing on 13 February 2020.  In both instances Infratil may elect to close the offer earlier.

Infratil also expects to provide holders of the IFT090 bonds that mature on 15 February 2020 ("2020 Bonds") with the opportunity (subject to availability) to exchange some or all of their maturing bonds for 2026 Bonds.  If that option is made available, Infratil will send further information on how to apply directly to holders of the 2020 Bonds. 

Interested investors, should contact their broker or one of the managers of the offer (outlined below) for more details.

ANZ Bank New Zealand Limited                0800 269 476

Bank of New Zealand                                 0800 284 017

Jarden Securities Limited                           0800 005 678       www.jarden.co.nz

Forsyth Barr Limited                                   0800 367 227         www.forsythbarr.co.nz

 

Application has been made to NZX for permission to quote 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 is a licensed market operator, and the NZX Debt Market is a licensed market, each regulated under the Financial Markets Conduct Act 2013. 

 

Exchange Offer Application Form

22 October 2019

 

The offer comprises a General Offer to all investors in New Zealand and an Exchange Offer under which holders of the IFT200 bonds that mature on 15 November 2019 have the opporunity (subject to availability) to exchange some or all of their maturing bonds for 2026 Bonds. Holders of the IFT200 bonds also have the option (subject to availability) of exchanging some or all of their maturing bonds for 2029 Bonds, as described in the separate offer documents for the 2029 Bonds. Details on how to apply for the Infrastructure Bonds are set out in the Terms Sheet.
The offer is now open, with the Exchange Offer closing on 8 November 2019 and the General Offer closing on 13 February 2020. In both instances Infratil may elect to close the offer earlier.

Infratil Infrastructure Bonds due 15 December 2029

Details on how to apply for 2029 Bonds are set out in the Revised Terms Sheet.

 

On 20 September 2019, Infratil announced that it had extended the closing date for the offer of its Infrastructure Bonds due 15 December 2029 ("2029 Bonds") to 5:00pm on 13 November 2019.The original Terms Sheet has been revised to reflect the extended closing date for the 2029 Bonds and to remove references to the offer of Infrastructure Bonds due 15 December 2026, which has now closed. 

 

Infratil Infrastructure Bonds

The terms sheets applicable to Infratil’s bonds are available below.

All Infratil Infrastructure Bonds are listed on the NZDX. Most trade regularly, but because many investors hold to maturity at times trading can be thin and prices volatile, even though several banks and brokers trade the Bonds.
Infratil’s Annual Report contains a section which deals with Infratil’s Bonds, including a summary of the relevant year’s secondary market activity 

With regards to the key coupon and maturity features, the Bonds fall into three distinct categories:

1. Fixed Maturity and Fixed Coupon. Most of the Bonds have a specified maturity date and a fixed quarterly coupon.
2. Fixed Maturity and Floating Coupon. The Bond maturing December 2029 will have its coupon rate reset each 15th December from 2020 to provide a one year return of 2.5%pa. over the one year Bank Rate * as at that day. The Bond maturing December 2028 will have its coupon rate reset once on 15 December 2023 to provide a return of 2.5%pa. over the then five year Bank Rate *
3. No Maturity and Floating Coupon. One Bond is a perpetual security meaning that it has no maturity date. Each 15th November its coupon rate is rest to provide a one year return of 1.5%pa. over the one year Bank Rate * as at that day. The special features of this bond are set out in a report copied below.

* The Bank Rate is the average of the interbank interest rate swap rates quoted that day for quarterly interest rate swaps of the relevant term.

IFT090 15 Feb 2020
Offer Opened

20 Dec 2005

Offer Closed

02 Jun 2006

Bond Maturity

15 Feb 2020

Face Value on Issue

$80,497,600

Coupon (all payable quarterly)

8.5% per annum

IFT190 15 Jun 2022
Offer Opened

29 Apr 2013

Offer Closed

28 Jun 2013

Bond Maturity

15 Jun 2022

Face Value on Issue

$93,696,000

Coupon (all payable quarterly)

6.85% per annum

IFT210 15 Sep 2023
Offer Opened

01 Oct 2015

Offer Closed

15 Nov 2015

Bond Maturity

15 Sep 2023

Face Value on Issue

$122,103,683

Coupon (all payable quarterly)

5.25%

IFT220 15 Jun 2021
Offer Opened

20 May 2016

Offer Closed

10 Jun 2016

Bond Maturity

15 Jun 2021

Face Value on Issue

$93,883,000

Coupon (all payable quarterly)

4.90%

IFT230 15 Jun 2024
Offer Opened

20 May 2016

Offer Closed

10 Jun 2016

Bond Maturity

15 Jun 2024

Face Value on Issue

$56,117,000

Coupon (all payable quarterly)

5.50%

IFT240 15 Dec 2022
Offer Opened

18 May 2017

Offer Closed

12 Jun 2017

Bond Maturity

15 Dec 2022

Face Value on Issue

$100,000,000

Coupon (all payable quarterly)

5.65% per annum

IFT250 15 Jun 2025
Offer Opened

18 May 2017

Offer Closed

23 Jun 2017

Bond Maturity

15 Jun 2025

Face Value on Issue

$43,413,442

Coupon (all payable quarterly)

6.15%

IFT260 15 Dec 2024
Offer Opened

01 Oct 2018

Offer Closed

31 Oct 2018

Bond Maturity

15 Dec 2024

Face Value on Issue

$100,000,000

Coupon (all payable quarterly)

4.75%

IFT270 15 Dec 2028
Offer Opened

01 Oct 2018

Offer Closed

31 Oct 2018

Bond Maturity

15 Dec 2028

Face Value on Issue

$146,249,000

Coupon (all payable quarterly)

4.85% rate reset after 5 years

IFT280 15 Dec 2026
Offer Opened

20 Aug 2019

Offer Closed

20 Sep 2019

Bond Maturity

15 Dec 2026

Face Value on Issue

Coupon (all payable quarterly)

3.50%

IFTHC 15 December 2029
Offer Opened

20 Aug 2019

Offer Closed

Bond Maturity

15 Dec 2029

Face Value on Issue

Coupon (all payable quarterly)

3.50% until 15 Dec 2020 rate reset on 15 December 2020 and annually thereafter

IFTHA Perpetual
Offer Opened

17 Nov 2006

Offer Closed

30 Apr 2007

Bond Maturity

Face Value on Issue

$231,900,000

Coupon (all payable quarterly)

The coupon rate is reset every 15 November at 1.5% over the then one year Bank Base Rate

Infrastructure Bonds Trust Deed

Infratil Infrastructure Bonds Amendment and Restatement Trust Deed effective from 11 September 2015

Infratil Trust Deed Amendments

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
Infratil Infrastructure Bonds Trust Deed 17 May 2017

The Trustee is Trustees Executors Limited, Level 5, 10 Customhouse Quay, Wellington.
Telephone : 04 495 0999

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.

Perpetual Infratil Infrastructure Bonds PiiB

Outlined below is a detailed explanation of the PiiB. These are an unusual debt instrument as the coupon rate is reset each year and there is no maturity date. The explanation covers the history of the PiiBs and factors investors should consider when buying or selling them.

Perpetual Infratil Infrastructure Bonds March 2018 (PDF)

Trustpower Wellington Airport Infratil Property Australian Social Infrastructure Partners CDC Data Centres RetireAustralia Vodafone New Zealand Tilt Renewables Longroad