Z Energy Limited (Z Energy) has today registered a Simplified Disclosure Prospectus (SDP) for an offer of bonds to the public with a principal amount of up to $100 million (with the option to accept oversubscriptions of up to $50 million) and a term of approximately seven years, maturing 15 November 2019.
Z Energy is pleased to be offering the bonds to New Zealand investors, following its two successful bond offerings in 2010 and 2011. This offer represents an opportunity to invest in the bonds of a locally owned and strategically important New Zealand energy company which distributes around one third of New Zealand’s total fuel.
The offer is expected to open on Wednesday 18 July 2012 and to remain open until Friday 10 August 2012, or such other date determined by Z Energy. The interest rate applicable to the bonds will be determined and announced prior to the offer open date. The bonds are expected to be quoted on the NZX Debt Market (NZDX) from 16 August 2012.*
The bonds are senior, secured, fixed rate obligations of Z Energy, and will rank equally with each other and with existing bonds issued by Z Energy. The bonds are fully and unconditionally guaranteed by the Z Energy Group.**
Bondholders and the Z Energy Group’s banks share the same security on an equal ranking basis. Both groups rank behind security held by Z Energy’s suppliers over crude oil and refined products (and their proceeds), in each case to the extent that the supplier has not received payment of the purchase price for them. The security also ranks behind statutorily preferred creditors and (in certain circumstances) other working capital providers.
Interest will be paid quarterly in arrears, with the first interest payment date scheduled for 15 November 2012. Early bird interest will accrue (to the extent applications are successful), at the interest rate, from the date on which subscription money is banked into the offer trust account to the issue date and be paid shortly after the issue date.
The Joint Lead Managers are:
ANZ: 0800 269 476, www.anz.co.nz/ipo
Craigs Investment Partners: 0800 226 263, www.craigsip.com
Forsyth Barr: 0800 367 227, www.forsythbarr.co.nz
Westpac Institutional Bank: 0800 601 901
Investors should contact any of the Joint Lead Managers or their financial advisor to request a free copy of the SDP.***
For further information contact one of the Joint Lead Managers on the contact details above.
* Application has been made to NZX Limited (NZX) for permission to list the Bonds on the NZDX and all the requirements of NZX relating to that application that can be complied with on or before the date of the SDP have been duly complied with. However NZX accepts no responsibility for any statement in the SDP or this announcement. NZX is a registered exchange, and the NZDX is a registered market, each regulated under the Securities Markets Act 1988.
** ‘Z Energy Group’ means Z Energy, Aotea Energy Limited, Z Energy Holdings Limited, Greenstone Energy Finance Limited, Harbour City Property Investments Limited and Mini Fuels & Oils Limited. The guarantee is secured over all assets of the Z Energy Group, except for certain excluded assets.
*** Applications for bonds can only be made using the application form included in the SDP. No applications for bonds will be accepted or money received unless the subscriber has received a copy of the SDP. The minimum application amount is for bonds with a principal amount of at least $5,000 and in multiples of $1,000 thereafter.
Richard Norris, Treasurer: 04 462 4611
Jonathan Hill, Corporate Communications: 04 498 0212