Bond Holder Information |
Senior Bonds
TrustPower has on issue two tranches of unsecured, unsubordinated bonds with a combined face value of $140 million as described in the table below. Each bond has a face value of $1.
| Maturity Date | Coupon Rate (%) | Face Value ($000's) |
| December 2014 | 7.6 | 75,000 |
| December 2016 | 8.0 | 65,000 |
| Total | - | 140,000 |
Important Points
• Interest is paid quarterly on the 15th of June, September, December and March.
• The bonds rank equally with other bank debt and ahead of the subordinated bonds
• TrustPower bonds are traded via the New Zealand Debt Market (NZDX).
• The market value of bonds will be affected by a range of factors, most importantly interest rates.
This does not affect the interest paid which is fixed.
• Withholding tax is deducted, where appropriate, from payments made to bondholders.
The Master Trust Deed which covers TrustPower’s bond programme provides the rules that govern the bond issues as well as the rights and obligations of both TrustPower and bondholders. Refer also the senior bond section for full documentation prepared when the bonds were issued.
Subordinated Bonds
TrustPower has on issue three tranches of unsecured, subordinated bonds with a combined face value of over $263 million as described in the table below. Each bond has a face value of $1.
| Maturity Date | Coupon Rate (%) | Face Value ($000's) |
| September 2012 | 8.5 | 108,592 |
| March 2014 | 8.5 | 54,713 |
| December 2015 | 8.4 | 100,000 |
| Total | - | 263,305 |
Important Points
- Interest is paid quarterly on the 15th of June, September, December and March.
- The bonds may be converted to TrustPower ordinary shares on the maturity date or the face value repaid in cash at the election of TrustPower. Should TrustPower elect to convert the Bonds the conversion percentage for each series of bonds is 98% of the current share price.
- TrustPower bonds are traded via the New Zealand Debt Market (NZDX).
- The market value of bonds will be affected by a range of factors, most importantly interest rates. This does not affect the interest paid which is fixed.
- Withholding tax is deducted, where appropriate, from payments made to bondholders.
The Trust Deed which covers TrustPower’s bond programme provides the rules that govern the bond issues as well as the rights and obligations of both TrustPower and bondholders.
Independent advisors rate TrustPower’s bonds as a sound investment with good levels of security, for example see Grosvenor Financial Services.
