Completion Of Australian Financing Package

Business Wire, Feb 14, 1997

LONDON--(BUSINESS WIRE)--Feb. 14, 1997--National Power PLC today completed its programme of funding in the Australian financial markets with the issue of A$250 million in 10-year Australian Bonds. The Bond issue, lead-managed by BZW and supported by Deutsche Morgan Grenfell and Commonwealth Bank of Australia, will carry a semi-annual coupon of 8%. Its pricing is driven off the Commonwealth Government Security of October 2007 with a re-offer spread of 69bp yielding 8.025%.

Philip Smith, National Power's Director of Treasury, said the size of the issue was less than indicated on 3rd February when the programme was announced. This was as a result of further discussions with investors and market soundings which showed changes in the depth of interest. However, the overall package of funding and facilities, including this issue, would be more than sufficient to cover the refinancing of National Power's A$624 million equity investment in the Hazelwood Power Corporation. "The issue reconfirms National Power's wholehearted commitment to the development of its Australian business and the use of its local markets," he said.

A National Power led consortium purchased the business of Hazelwood Power Corporation for A$2.35 billion in September 1996. The business assets comprise a 1600MW power station and brown coal mine in Victoria's Latrobe Valley some 90 miles from Melbourne. National Power has a 51.94% equity stake in the consortium for A$624 million.

The Company's partners are: American utility, PacifiCorp (with a 19.9% stake); Destec Energy Inc (20%), Commonwealth Financial Services (Australian Institutional Investor and Funds Manager) (6.125%, and Commonwealth Bank of Australia (2.04%).

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