Wednesday 26th November 2014 |
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Genesis Energy, New Zealand's largest electricity retailer, has raised US$150 million in its first issue of notes in the US private placement market and will use the funds to repay bank debt.
Under the note purchase agreement, Genesis will issue US$50 million of 11 year notes at a coupon of 3.64 percent and US$100 million in two tranches of 12 year notes at a coupon of 3.69 percent, the Auckland based company said in a statement.
The coupons represent a margin over benchmark 10 year Treasury bonds of 1.35 percent and 1.4 percent respectively, which Genesis said meant the debt was "priced at tight levels notwithstanding the market volatility in the week preceding pricing, with US Treasury yields coming under pressure and dampening investor demand for lesser credits."
The power company had $989 million of borrowings as at June 30, down from $1.02 billion a year earlier.
Shares of Genesis last traded at $2.10 and have gained 16 percent this year.
BusinessDesk.co.nz
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