9 Apr 2011

Genesis raises funds for power station purchase

6:08 am on 9 April 2011

Genesis Energy hopes to raise up to $275 million through a bond issue, to help it fund the purchase of the Tekapo A and B stations from Meridian Energy.

The purchase is part of a Government-mandated asset swap,

The deal will also be funded through bank debt and existing cash and is expected to cost Genesis $821 million. It is due to be completed in June.

Genesis hopes to raise $225 million through the bond issue, and will accept oversubscriptions of up to $50 million.

The bond offer runs from 15 April - 18 May, with a minimum holding of $5000.

Standard & Poor's has assigned the proposed bonds a BB- rating.

Craigs Investment Partners is arranging the bond issue and is acting as a joint lead manager with ANZ, Forsyth Barr Limited and Westpac. First NZ Capital Securities is the co-manager.