New Zealand Gazette – 2012 – No. 132

Page 3805

✨ Financial Statements - Borrowings



2 NOVEMBER 2012 NEW ZEALAND GAZETTE, No. 132 3805

Notes to and Forming Part of the Financial Statements
For the year ended 31 March 2012

POWERCO

GAS DIVISION

3 BORROWINGS

Non current liabilities at amortised cost

Guaranteed bonds (a)

  • Wholesale bonds (b)
  • US dollar private placement notes (c)
  • Commercial bank debt (d)
31 March 2012 30 June 2011
NZ$000 NZ$000
Guaranteed bonds 21,661 70,602
Wholesale bonds 20,922 —
US dollar placement 16,638 110,104
Commercial bank debt 38,294 37,264
Total 177,615 218,055

Current liabilities at amortised cost

Bank overdraft (note 5)

  • Wholesale bonds (b)
  • US dollar private placement notes (c)
  • Commercial bank debt (d)
31 March 2012 30 June 2011
NZ$000 NZ$000
Bank overdraft 24 —
Wholesale bonds 48,973 21
US dollar placement 255 993
Commercial bank debt 51 404
Total 50,303 1,428

(a) Guaranteed bonds

31 March 2012 30 June 2011
NZ$000 NZ$000
9 year guaranteed bonds
Adjustment for the fair value of the interest rate risk 20,807 21,016
Deferred funding costs (674) (1,015)
11 year guaranteed bonds
Adjustment for the fair value of the interest rate risk 10,458 10,588
Deferred funding costs (603) (765)
7 year guaranteed bonds
Deferred funding costs (27) (198)
12 year guaranteed bonds
Deferred funding costs 10,409 10,508
(337) (156)
Accrued interest 70 70,603
39 31
Carrying value of guaranteed bonds 70,531 70,632

| | |
| Current portion | 46,870 | 31 |
| Non current portion | 21,661 | 70,602 |
| Total | 70,531 | 70,632 |

$250 million of guaranteed bonds were issued on 29 March 2004 as unsecured debt obligations of Powerco. The scheduled payments by the Company of interest and principal are guaranteed on an unsecured basis by US-based Syncora Guarantee Inc (Syncora), a specialist financial guaranty organisation. The final tranche of bonds matured and were repaid on 29 March 2011 (9 year bonds). The remaining tranches mature on 29 March 2013 (8 year bonds) and 29 June 2019 (11 year bonds). The interest rates on the bonds are fixed until maturity:

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

A further $180 million of guaranteed bonds were issued on 28 September 2005 as secured unsubordinated obligations of the Company. The scheduled payments of interest and principal of these bonds are also guaranteed on an unsecured basis by Syncora. 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: 6.20%
  • 12 year guaranteed bonds: 6.74%

Under a Trust Deed constituting the guaranteed bonds, the Company has covenanted to ensure that, if Syncora defaults on its obligations under the Financial Guaranty, the Company will promptly provide number of substitutions to guarantee the obligations under the guaranteed bonds by Syncora. Further guarantees are provided by certain of the Company’s subsidiaries to the guarantor under the guaranteed bonds. In the event of insolvency, the total liabilities under the bonds are the total principal amounts of the Company debt at guarantee substitution date which at 31 March 2012 no default by Syncora had occurred.



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Online Sources for this page:

Gazette.govt.nz — PDF NZ Gazette 2012, No 132




✨ LLM interpretation of page content

💰 Deferred Tax - Temporary Differences (continued from previous page)

💰 Finance & Revenue
Deferred Tax, Temporary Differences, Financial Statements

💰 Borrowings - Guaranteed Bonds

💰 Finance & Revenue
Borrowings, Guaranteed Bonds, Financial Statements, Powerco, Syncora Guarantee Inc

💰 Borrowings - Wholesale Bonds

💰 Finance & Revenue
Borrowings, Wholesale Bonds, Financial Statements, Powerco

💰 Borrowings - US Dollar Private Placement Notes

💰 Finance & Revenue
Borrowings, US Dollar Private Placement Notes, Financial Statements, Powerco

💰 Borrowings - Commercial Bank Debt

💰 Finance & Revenue
Borrowings, Commercial Bank Debt, Financial Statements, Powerco