INDEPENDENT NEWS

Genesis Energy first public bond issue

Published: Wed 3 Dec 2008 03:47 PM
Genesis Energy delighted with strong interest for its first public bond issue
Genesis Energy is delighted to announce that due to the strong interest for its first issue of unsecured, unsubordinated bonds (“Bonds”) to the New Zealand public, Genesis Energy’s initial target of raising $150 million has been exceeded, and it will exercise its right to accept over-subscriptions of up to $75 million.
$120 million of 5 year Bonds (maturing on 15 March 2014) have been reserved for clients of those participants in the Bookbuild process who have received a firm allocation. There will be no public pool for the 5 year Bonds.
$105 million of the 7 year Bonds (maturing on 15 March 2016) have also been reserved for clients of participants in the Bookbuild process. There will be no public pool for the 7 year Bonds.
Genesis Energy has also set the Minimum Coupon Rates and Issue Margins.
For the 5 year Bonds maturing on 15 March 2014, the Minimum Coupon Rate is 7.25% p.a. and the Issue Margin is 1.80%. The Interest Rate payable for the 5 year Bonds will therefore be the higher of:
 7.25% p.a; and
 1.80% plus the applicable Swap Rate on the Final Issue Date.
For the 7 year Bonds maturing on 15 March 2016, the Minimum Coupon Rate is 7.65% p.a. and the Issue Margin is 2.10%. The Interest Rate payable for the 7 year Bonds will therefore be the higher of:
 7.65% p.a; and
 2.10% plus the applicable Swap Rate on the Final Issue Date.
The final Interest Rates payable on the Bonds will be determined and announced by Genesis Energy on 23 December 2008. The minimum holding in respect of both the 5 year Bonds and the 7 year Bonds is $5,000.
Successful investors are reminded that they will start accruing Interest on any Bonds subscribed for from the date that the Registry banks the application money. Investors are therefore encouraged to lodge their application forms as soon as possible.
The Offer is open from 3 December to 19 December 2008, unless it is closed early. Please contact your sharebroker or financial advisor for information on the availability of each series of the Bonds and for a copy of the Investment Statement. A copy of the Investment Statement is also available at Genesis Energy's website at genesisenergy.co.nz/bonds. Details of the Swap Rate and other terms and conditions of the Bonds are described in the Investment Statement.
ENDS

Next in Business, Science, and Tech

Business Canterbury Urges Council To Cut Costs, Not Ambition For City
By: Business Canterbury
Wellington Airport On Track For Net Zero Emissions By 2028
By: Wellington Airport Limited
ANZAC Gall Fly Release Promises Natural Solution To Weed Threat
By: Landcare Research
Auckland Rat Lovers Unite!
By: NZ Anti-Vivisection Society
$1.35 Million Grant To Study Lion-like Jumping Spiders
By: University of Canterbury
Government Ends War On Farming
By: Federated Farmers
View as: DESKTOP | MOBILE © Scoop Media