22 Sep 2011

Telecom ups offer to bond holders

8:39 am on 22 September 2011

Telecom has improved its offer to bond holders owed $541 million, in return for their support of its proposed split.

After discussions with investors, the company says it has raised the fee on offer to its Telebond holders to half a per cent from a previously offered quarter of a per cent.

That will cost Telecom an extra $1.3 million, as it pays out $2.7 million altogether in fees to investors.

In addition, it will top up its annual interest payment to bondholders by 0.5 percentage points if its credit rating is cut below the A-band.

A Telecom stockholder meeting on 30 September will vote on the changes.