Vector Limited Bonds – Election Notice


Vector Limited (Vector) is currently issuing Subordinated Unsecured Capital Bonds (VCT080) subject to the terms of the Indenture dated September 25, 2002 (as amended) (Trust Deed). Under the Trust Deed, bondholders have the right to elect to retain or sell all or a portion of their Capital Bonds or request the purchase of additional Capital Bonds offered through a resale facility, on each election date. The next election date is June 15, 2022.

Notice of election

Vector announces that it will today send an election notice and explanatory notes to the registered email or postal address of each holder of Capital Bonds whose name appeared on the Capital Bond Register at the close of the trading on April 28, 2022. Copies of the notice of election and the explanatory notes to the notes are attached to this announcement. Bondholders are encouraged to complete this election notice online at www.vctbondelection.co.nz.

From June 15, 2022, capital bonds will be subject to a new interest rate and the next election date for capital bonds will be June 15, 2027.

The choice options available to New Zealand bondholders are as follows:

• retain all of their Capital Bonds; or

• retain all of their Principal Obligations and request the purchase of additional Capital Obligations through the resale facility to be established by Vector as part of the election process (the Resale Facility); or

• offer to sell some of their Capital Obligations through the Resale Facility and retain the balance of their Capital Obligations; or

• offer to sell all of their Capital Obligations through the Resale Facility.

If, at the close of business on May 31, 2022, a bondholder has a registered address outside of New Zealand, all of that bondholder’s Capital Bonds will automatically be offered for sale under ease of resale.

Interest rate

If all of the Capital Bonds offered for sale through the Resale Facility are sold or redeemed by Vector, the interest rate applicable to the Capital Bonds from June 15, 2022 will be the higher of:

• 5.50% per year; or

• the five-year swap rate at or around 3 p.m. on June 14, 2022 plus the issue margin of 1.80% per annum.

If any Capital Bonds offered for sale through the Resale Facility are not sold or redeemed by Vector, the interest rate payable by Vector on all Capital Bonds from June 15, 2022 will be the ‘Adjusted Interest. The adjusted interest rate is the total of the following elements:

• 5-year swap rate at or around 3 p.m. on June 14, 2022; more

• Issue margin for the previous obligation period (ie an issue margin of 2.75% per year); more

• Specified margin (ie 1.00% per annum).

Vector has made no decision as to whether it will purchase or redeem any capital bonds that are placed by bondholders under the Resale Facility. Vector’s ability to purchase or redeem Capital Bonds is contingent upon satisfaction of being able to comply with its obligations under the Replacement Collateral Deed Survey.1

make elections

New Zealand bondholders have until 5 p.m. on Tuesday, May 31, 2022 to announce their election in accordance with Vector’s guidelines for the election process. If a bondholder fails to properly complete and submit an Election Notice in accordance with the applicable instructions, such bondholder will be deemed to have elected to retain all of its Principal Obligations subject to the new interest rate, new interest payment dates and the new election date.

Bondholders with a registered address outside of New Zealand at the close of business on May 31, 2022 do not need to file an election notice. All Capital Bonds held by such Bondholders will automatically be offered for sale under the Resale Facility.

Stop trading

Trading in the Capital Bonds (VCT080) was suspended at the close of trading on Tuesday, April 26, 2022. Trading in the Capital Bonds (under a new symbol VCT110) will begin on Thursday, June 16, 2022, the immediately following trading day. the election. Date.

Interest payment

Registered holders of Capital Bonds as of May 31, 2022 will be entitled to receive all accrued, uncancelled and unpaid interest through June 15, 2022.

Joint leaders

ANZ 0800 269 476

Craigs Investment Partners 0800 226 263

Forsyth Barr 0800 367 227

BNZ 0800 284 017

1 Details of the Replacement Bond Deed survey are available at www.vector.co.nz/investors/bonds

ENDS

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