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Chorus Limited has announced the launch of 5-year, unsecured, unsubordinated, fixed rate note.

The details of the bond issue are contained in the attached product disclosure statement with a brief summary of the offer set out below.

Summary Details

Issuer: Chorus Limited

Type of Instrument: Unsecured, unsubordinated fixed rate bonds

Credit Rating: BBB by S&P

Ranking: The bonds rank equally with Chorus’ other unsecured and unsubordinated obligations

Issue Amount: Up to NZ$300 million plus up to NZ$100 million oversubscriptions at Chorus’ discretion

Issue Margin:Currently indicated at 160-180bps

Interest Rate: The sum of the prevailing 5 year swap rate on the Rate Set Date plus the Issue Margin and subject to a minimum of 4.10%. The indicative issue margin range currently equates to a rate of 4.10%-4.30%.

Interest Payments: Quarterly in arrears on the 6th February, 6th May, 6th August and 6th November each year, commencing on the 6th August 2016

Maturity Date: 6th May 2021

Denominations: Minimum of NZ$5,000 and in multiples of NZ$1,000 thereafter

Use of Proceeds: The proceeds of this Offer are expected to be applied towards repaying existing bank loans