New Zealand Gazette – 2006 – No. 154

Page 4458

✨ Financial Statements



Vector Limited & Subsidiaries

Gas Distribution Activities

Notes to the Financial Statements

For the year ended 30 June 2006

14. BORROWINGS (continued)

As at 30 June 2005

Weighted average interest rate Payable Total within 1 year $'000 Payable between 1 and 2 years $'000 Payable between 2 and 5 years $'000 Payable after 5 years $'000
Bank loans 7.30% 132,676 67,202 32,898 -
Working capital loan 6.95% 5,876 5,876 -
-
Medium term notes - fixed rate NZ$ 6.50% 25,486 -
25,486 -
Medium term notes - floating rate A$ 6.24% 72,691 -
-
40,754 31,937
Capital bonds 9.75% 39,245 -
39,245 -
Fixed interest rate bonds 6.81% 25,363 -
-
25,363 -
Private placement senior notes 5.65% 53,439 -
-
-
53,439
Pre-IPO equity securities 8.51% 45,274 45,274 -
-
-
400,050 118,352 97,629 98,693

All borrowings are unsecured with all bank loans and medium term notes being subject to negative pledge arrangements.

Interest rates for all bank loans are floating based on the bank bill rate plus a margin. Bank loans are arranged through various facility agreements. Facilities with total committed amount of $700 million will expire in October 2008. The working capital facility with total commitment of $70 million is due to expire in October 2006.

Medium term notes - fixed rate NZ$ mature April 2007 and are shown at the value of proceeds received after deducting the discount on issue of $1.7 million and adjusting for the amount amortised to 30 June 2006 of $1.5 million. The interest on NZ$ medium term notes is fixed at 6.5% per annum and is paid semi-annually.

Medium term notes - floating rate A$ mature April 2008 and April 2011. The interest on A$ medium term notes is paid quarterly, based on BBSW plus a margin.

Capital bonds are subordinated debt and have a first election date of 15 December 2006. The interest is currently fixed at 8.25% per annum and is paid semi-annually. The board are currently considering options and intend to extend the term of the capital bonds beyond the first election date.

Fixed interest rate bonds have a coupon rate of 6.81%. On 23 December 2005, Vector was substituted for NGC Holdings Limited as the issuer of $200 million of fixed interest rate bonds due to mature on 4 March 2009. As a result, Vector has now taken over all rights and obligations of these fixed interest rate bonds.

Private placement senior notes of US$15 million, US$65 million and US$195 million, with maturity periods of 8, 12 and 15 years respectively were placed with US investors in September 2004 at a contract exchange rate of 0.6574 US$ for every NZ$.

Pre-IPO equity securities, which were subordinated debt, of $354.4 million were prepaid in August 2005.

In October 2005, Vector completed the refinancing of $1 billion worth of acquisition facilities and also completed the joining of NGC Holdings Limited to the Vector guaranteeing group. Vector issued NZ floating rate notes totalling $1 billion in three tranches ($250 million 10 year, $400 million 12 year and $350 million 15 year), which have been credit wrapped by MBIA Insurance Corporation (10 year and 15 year tranches) and AMBAC Assurance Corporation (12 year tranche) and have credit ratings of AAA from Standard and Poor's and Aaa from Moody's.

Borrowings are classified between current and non-current dependent on expected repayment dates. Borrowings are subject to various lending covenants. These have all been met for the years ended 30 June 2005 and 30 June 2006.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 154


Gazette.govt.nz — PDF NZ Gazette 2006, No 154




✨ LLM interpretation of page content

💰 Vector Limited & Subsidiaries Gas Distribution Financial Position (continued from previous page)

💰 Finance & Revenue
Financial Statement, Property, Plant and Equipment, Valuation, Depreciation, Auckland, Distribution Systems