New Zealand Gazette – 2007 – No. 133

Page 3479

✨ Financial Statements



Notes to and Forming Part of the Financial Statements

For the year ended 30 June 2007

POWERCO

GAS DIVISION

3 BORROWINGS

Non-current liabilities at amortised cost

30 June 2007 30 June 2006
NZ$000 NZ$000
Subordinated bonds 20,446 20,845
Guaranteed bonds 86,916 88,429
US dollar private placement notes 44,361 55,024
Commercial bank debt 34,689 34,687
Total 187,032 199,085

Current liabilities at amortised cost

30 June 2007 30 June 2006
NZ$000 NZ$000
Bank overdraft (note 5) 4,463 4,300
Commercial paper facility 32,521 32,519
Commercial bank debt 5,799 —
Total 42,803 36,899

(a) Subordinated bonds

30 June 2007 30 June 2006
NZ$000 NZ$000
Subordinated bonds 21,680 21,680
Adjustment for the fair value of the interest rate risk (815) (116)
20,865 21,564
Deferred funding costs (419) (619)
Carrying value of subordinated bonds 20,446 20,845

$100 million of subordinated bonds were issued on 15 April 2005 and are unsecured, subordinated debt obligations of Powerco Limited. They have a tenure of 5 years and have an interest rate of 7.64% p.a. fixed until expiry on 15 April 2010. $21.680 million (2006: $21.680 million) of subordinated bonds have been allocated to Powerco’s gas division.

(b) Guaranteed bonds

30 June 2007 30 June 2006
NZ$000 NZ$000
7 year guaranteed bonds 21,679 21,679
Adjustment for the fair value of the interest rate risk (1,722) (966)
9 year guaranteed bonds 21,679 21,679
Adjustment for the fair value of the interest rate risk (1,722) (966)
11 year guaranteed bonds 10,839 10,839
Adjustment for the fair value of the interest rate risk (861) (483)
7 year guaranteed bonds (new issue) 28,183 —
12 year guaranteed bonds 10,839 10,839
Total 88,914 80,804
Deferred funding costs (1,998) (2,375)
Carrying value of guaranteed bonds 86,916 88,429

$250 million of Guaranteed Bonds were issued on 29 March 2004 as unsecured debt obligations of Powerco Limited, of which $54.197 million has been allocated to the Powerco gas division (2006: $54.197 million). The scheduled payments by Powerco Limited of interest and principal are guaranteed on an unsecured basis by US-based XL Capital Assurance Inc. as specialist financial guaranty organisation. The interest rates on the bonds are fixed until maturity:

  • 7 year guaranteed bonds: 6.22%
  • 9 year guaranteed bonds: 6.39%
  • 11 year guaranteed bonds: 6.53%

On 28 September 2005, a $180 million issue of guaranteed bonds took place, as secured unsubordinated obligations of Powerco Limited, of which $39,022 million has been allocated to the Powerco gas division (2006: $39,022 million). The scheduled payments of interest and principal payable by Powerco Limited were again guaranteed on an unsecured basis by XL Capital Assurance. The bonds expire on 28 September 2012 (7 year bonds) and 28 September 2017 (12 year bonds). The interest rates on the bonds are fixed until maturity:

  • 7 year guaranteed bonds: 5.59%
  • 12 year guaranteed bonds: 6.74%

Under the trust documents constituting the guaranteed bonds, Powerco Limited has covenanted to ensure that, if XLCA defaults on its obligations under the Financial Guaranty, Powerco Limited will procure a sufficient number of its subsidiaries to guarantee its obligations under the guaranteed bonds by signing a subsidiary guarantee so that at all times the total tangible assets of the guaranteeing subsidiaries equals 80% of the total tangible assets of the Powerco Group. As at 30 June 2007, no Subsidiary Guarantees had been executed.

The guaranteed bonds are secured against the network assets of Powerco Limited through the Security Trust Deed.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2007, No 133


Gazette.govt.nz — PDF NZ Gazette 2007, No 133




✨ LLM interpretation of page content

💰 Powerco Gas Division Financial Statements for the year ended 30 June 2007 (continued from previous page)

💰 Finance & Revenue
Financial Statements, Powerco, Gas Division, Revenue, Expenditure, Taxation