710

NEW ZEALAND GAZETTE, No. 25

29 FEBRUARY 2012

Notes to and Forming Part of the Financial Statements
For the year ended 30 June 2011

GAS DIVISION

$250 million of guaranteed bonds were issued on 29 March 2004 as unsecured debt obligations of Powerco Limited. The scheduled payments by Powerco of interest and principal are guaranteed on an unsecured basis by US-based Syncora Guarantee Inc (Syncora), a specialist financial guaranty organisation. During the period the first tranche of bonds matured and were repaid on 29 March 2011 (7 year bonds), replaced with a $100 million Revolving Cash Advances Facility. The remaining tranches mature on 29 March 2013 (9 year bonds) and 29 June 2015 (11 year bonds). The interest rates on the bonds are fixed until maturity and the bonds are now secured obligations of Powerco.

• 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 Powerco. The scheduled payments of interest and principal payable by Powerco were again guaranteed on an unsecured basis by Syncora Guarantee. 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 6.59%
• 12 year guaranteed bonds 6.74%

Under the trust documents constituting the guaranteed bonds, Powerco has covenanted to ensure that, if Syncora defaults on its obligations under the Financial Guaranty, Powerco will procure 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 Company and all guaranteeing subsidiaries exceeds 85% of the total tangible assets of the Group. As at 30 June 2011 no default by Syncora had occurred.

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

b) US dollar private placement

The US dollar private placement note issue took place on 25 November 2003 to private US investors. The US dollar private placement notes are debt obligations of Powerco. The coupon payments are semi-annual and the note issue expires 25 November 2014 (11 year), 25 November 2015 (12 year), and 25 November 2016 (13 year). The notes are secured against the network assets of Powerco through the Security Trust Deed.
The interest rates on the notes are fixed until maturity.

• 11 year US dollar private placement notes 5.47%
• 12 year US dollar private placement notes 5.57%
• 13 year US dollar private placement notes 5.67%

A further US dollar private placement note issue took place on 7 June 2011 to private US investors. The US dollar private placement notes are debt obligations of Powerco. The coupon payments are semi-annual and the note issue expires 7 June 2020 (9 year), 7 June 2023 (12 year), and 7 June 2026 (15 year). The notes are secured against the network assets of Powerco through the Security Trust Deed.
The interest rates on the notes are fixed until maturity.

• 9 year US dollar private placement notes 4.36%
• 12 year US dollar private placement notes 4.56%
• 15 year US dollar private placement notes 4.86%