Capital Markets Group

Arrangement of NZD300M Debt Facilities for TrustPower, New Zealand

Morrison & Co acted as financial adviser to TrustPower to secure committed bank facilities to finance acquisitions in the electricity industry following the introduction of the Electricity Industry Reform Act 1998 under which TrustPower elected to sell its monopoly lines business and focus on generation/retail activities.

The significance of this debt raising is that it was the first to be undertaken by a generator/retailer without the historical backing of a monopoly lines business or support from long-term power purchase arrangements.

Morrison & Co’s role included:

• Preparation of an information memorandum;
• Construction of forecasting model with scenario analysis capability;
• Analysis of the optimal form and terms of the debt facility; and
• Liaison with TrustPower management, financial and legal advisers.