CHORUS LIMITED — Capital/Financing Update 2011

Nov 28, 2011

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MEDIA RELEASE

29 November 2011

Chorus secures syndicated bank facility for demerger

Chorus confirmed today that it has secured a NZ$1.35 billion syndicated bank facility as part of its demerger from Telecom New Zealand.

Chorus CFO Andrew Carroll said he was pleased to have secured the long term funding in line with the funding requirements set out in the demerger Scheme Book.

“We initially sought $1 billion in bank financing and extended the bank facility to $1.35 billion following strong demand from domestic and foreign financial institutions. This means we can get on with building our fibre network with even greater funding certainty,” he said.

The syndicated bank facility comprises two equal tranches of $675 million over three and five years. Citibank N.A. acted as debt advisor to Chorus for the syndicated bank facility. Citibank N.A., ANZ National Bank and Westpac acted as Joint-Lead Arrangers and Bookrunners.

As announced previously, GBP234,823,000 of Chorus GBP EMTN bonds maturing in 2020 are also expected to be issued by Chorus.

The combination of bonds and syndicated bank facility means Chorus anticipates making only very limited drawings under the bridge facility which will be refinanced out of working capital. As noted in the Scheme Book, Chorus anticipates commencing with approximately $1.7 billion of net interest bearing net debt.

For further information:

Robin Kelly - Chorus Mbl: 027 655 5139 Email: robin.kelly@chorus.co.nz