KEY POINTS:
Genesis Energy says strong interest in its first issue of unsecured, unsubordinated bonds means it has exceeded its initial target of $150 million and it will accept over-subscriptions of up to $75 million.
Genesis said $120 million of five-year bonds (maturing on March 15, 2014) had been reserved for clients of those participants in the bookbuild process who have received a firm allocation.
The Government-owned power company said $105 million of the seven-year bonds (maturing on March 15, 2016) had also been reserved for clients of participants in the bookbuild process. There will be no public pool for either of the bonds.
Genesis has also set the minimum coupon rates and issue margins. For the five-year bonds the minimum coupon rate is 7.25 per cent and the issue margin is 1.80 per cent.
The interest rate payable for these bonds will be the higher of 7.25 per cent or 1.80 per cent plus the applicable swap rate - the borrow rate between banks - on the final issue date.
For the seven-year bonds the minimum coupon rate is 7.65 per cent and the issue margin is 2.10 per cent.
The interest rate payable for the seven-year bonds will be the higher of 7.65 per cent or 2.10 per cent plus the applicable swap rate on the final issue date.
The final interest rates payable on the bonds will be determined on December 23.
The minimum holding for both bonds is $5000. The offer is open until December 19, unless it is closed early.
- NZPA
