Genesis Energy markets 30-year bond

Friday 8th April 2011

State-owned Genesis Energy is selling a 30-year bond as part of the funding for the acquisition of the Tekapo A and B power stations.

A prospectus for the capital bonds maturing in July 2041 was lodged today with the Companies Office and an investment statement is now available. The offer will open on April 15 and close on May 18.

Genesis is seeking to raise $225 million and can accept oversubscriptions of up to $50 million.

The arranger and joint lead manager is Craigs Investment Partners Ltd. The other joint lead managers are ANZ, Forsyth Barr Ltd and Westpac Institutional Bank. The co-manager is First NZ Capital Securities Ltd.

Standard & Poor's has assigned a BB minus long-term issue rating to the bonds which will be treated as equity in its calculations.

The bonds are not guaranteed by the New Zealand government and have redemption rights for the issuer if the government's ownership of Genesis Energy reduces to 50% or less.

NZPA

Comments from our readers

No comments yet