Quayside rate set

The Bay of Plenty Regional Council has set the minimum dividend rate on up to $200 million perpetual preference shares, issued to fund infrastructure projects.

Tuesday, February 12th 2008, 10:05PM
The offer includes up to $150 million of perpetual preference shares in Quayside Holdings, a wholly owned subsidiary of the council, with the right to accept up to $50 million over-subscriptions.

Following an institutional auction yesterday, the minimum gross dividend rate on Quayside shares will be either 10%, or the sum of a 1.70% margin and the three-year swap rate, depending on which is greater.

The rate for the quarterly dividend is for three years, and will be reset every three years.

Dividends on the perpetual preference shares were expected to be funded from dividends paid by the council's 55% stake in Port of Tauranga, and returns from Quayside's other investments.

Proceeds would be used to establish a fund to invest in Bay of Plenty infrastructure projects.

The offer is scheduled to close on March 7.

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