No public pool for Genesis capital bonds

Friday 15th April 2011

Genesis Energy has set a minimum interest rate of 8.5% for the first period of its 30-year bonds after a bookbuild process and says there will be no pool of shares for the public to buy directly.

The state-owned energy company is selling a 30-year bond as part of the funding for the acquisition of the Tekapo A and B power stations.

Genesis was seeking to raise $225 million with an ability to accept oversubscriptions of up to $50 million.

It said today that a book build process has been successful and $275 million will be reserved for clients of participants in the bookbuild process who have received firm allocations. There will be no public pool.

The minimum interest rate is 8.5% per annum up until the first reset date on July 15, 2016. The final interest rate set on May 23 will be the higher of this minimum interest rate and the swap rate plus a margin of 3.87%.

The offer opens today and closes on May 18.

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.

NZPA

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