Contact Energy to fully redeem its capital bonds due 2042 on Nov. 15

By Tali David

Minneapolis, Oct. 18 - Contact Energy Ltd. plans to redeem all of its outstanding capital bonds due 2042, according to a press release.

The bonds will be redeemed on Nov. 15 using bank facilities and existing funds held on deposit.

The redemption comes after Standard and Poor's changed the criteria for assessing the equity content of hybrid securities. As a result of this change, bonds traded on the NZDX under the code "CENFA" no longer meet the criteria for "high" equity content and will be assigned a lower equity content.

The change in equity content, as a result of the criteria change, is a "rating agency event" under the terms and conditions of the bonds. As a consequence, Contact Energy is entitled to redeem the bonds on the next interest payment date following notice of redemption to bondholders at par plus accrued interest, the release said.

Contact Energy is a Wellington, New Zealand-based electricity corporation.

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