By Lisa Kerner
Charlotte, N.C., July 27 - CitiPower Pty. reached an agreement with U.S. investors to privately place $175 million and A$25 million of bonds in the U.S. market, according to a news release from Spark Infrastructure RE Ltd.
The bonds were issued in two tranches: A$69.5 million of seven-year bonds and the balance in nine-year bonds.
The funds will be used to partly refinance A$475 million of Australian credit-wrapped bonds and bank debt facilities that mature in February 2013 and also for capital purposes.
According to the release, the U.S. dollars were converted to Australian dollars in cross-currency swaps for a total raised of about A$194 million.
This is CitiPower's first placement in the U.S. private placement market.
CitiPower is an electricity supplier based in Melbourne, Australia. Spark Infrastructure, a Sydney, Australia-based specialist infrastructure fund, has a 49% interest in the company.
| Issuer: | CitiPower Pty.
|
| Issue: | Bonds
|
| Amount: | $175 million and A$25 million
|
| Maturity: | Seven years for A$69.5 million, nine years for remainder
|
| Distribution: | Private placement
|
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