WEL Networks Limited Bond Offer

Investment Opportunities

Posted 3 Jul 2018

WEL Networks Limited announces subordinated Bond offer

WEL Networks Limited (‘WEL’) has announced an offer (‘Offer’) of up to $125 million (with the ability to accept up to an additional $25 million of oversubscriptions at WEL’s discretion) of unsecured subordinated fixed rate bonds (‘Bonds’) to New Zealand retail investors and certain institutional investors.

WEL and its subsidiaries build, own and operate electricity distribution assets and fibre infrastructure. Measured by connections, WEL is the sixth largest electricity lines company in New Zealand, with approximately 90,000 connections predominantly throughout the Waikato. WEL owns 85% of Ultrafast Fibre Limited, which operates a 3,000km long telecommunications fibre network with the ability to provide high speed broadband access to over 200,000 consumers.

Forsyth Barr is Arranger and a Joint Lead Manager to the Bond Offer.

The interest rate will be set as the sum of the five year swap rate plus the margin, subject to a minimum interest rate of 4.90% per annum.  The indicative margin has been set at 2.30% to 2.50% per annum.

An announcement of the interest rate for the Bonds will be made following a bookbuild process, which is expected to be completed on Monday, 9 July 2018.

The Offer is expected to open on Tuesday, 10 July 2018 and close on Friday, 27 July 2018 at 5pm. The Bonds are expected to be quoted on the NZX Debt Market.

There is no public pool for the Offer, with all of the Bonds being reserved for clients of the joint lead managers, the co-manager and other approved financial intermediaries. The Offer is being made in accordance with the Financial Markets Conduct Act 2013.

Full details of the Offer are contained in the product disclosure statement (‘PDS’) which has been lodged with the Registrar of Financial Service Providers. A copy of the PDS can be found here or by contacting your Forsyth Barr Investment Adviser, and must be obtained by investors before they decide to apply for any Bonds.

Forsyth Barr Limited has been appointed as Arranger and Joint Lead Manager to the Offer and will receive fees for undertaking these roles. This information is general in nature and should not be regarded as personalised investment advice. Disclosure Statements are available on request and free of charge.

The above is a summary only. Full details of the Offer are contained in the PDS and should be read in full before deciding whether to invest.

WEL has not taken and will not take any action which would permit a public offering of Bonds, or possession or distribution of any offering material in respect of the Bonds, in any country or jurisdiction where action for that purpose is required (other than New Zealand). You may only offer for sale or sell any Bond in conformity with all applicable laws and regulations in any jurisdiction in which it is offered, sold or delivered.

If you're new to investing or just have a question please call us: 0800 367 227