Genie to renew offer to swap out stock for series 2012-A preferreds

By Susanna Moon

Chicago, Nov. 19 - Genie Energy Ltd. said it plans to renew an offer to exchange up to 7,145,409 class B common shares for its series 2012-A preferred stock.

The company's offer will be on the same terms as the previous exchange offer, which closed Oct. 10 with the exchange of 1,604,591 class B shares for an equal number of preferreds, according to a company press release.

The renewed offer will cover about one-third of the outstanding common stock, and Howard Jonas, chairman and controlling stockholder, will not exchange any shares that he owns or controls, the release noted.

The exchange will again be on a 1-for-1 basis.

The series 2012-A preferreds have a liquidation preference of $8.50 per share, and dividends will be $0.6375 per share plus the potential for an increase based on the performance of Genie's retail energy provider business, the company said.

The preferreds are redeemable after Oct. 11, 2016 at 101% of the liquidation preference plus accrued dividends and after Oct. 11, 2017 at the liquidation preference plus accrued dividends.

In connection with the previous exchange offer, the company suspended payment of dividends on its class A and class B stock.

The company renewed the offer because it wanted "to ensure that all interested stockholders have the opportunity to participate, and [the company is] launching a new offer on the same terms covering those shares not taken up in the prior offer," Ira Greenstein, president of Genie, said in the release.

Newark-based Genie Energy is comprised of IDT Energy and Genie Oil and Gas. IDT Energy supplies electricity and natural gas to residential and small business customers. Genie Oil and Gas makes technologies to produce transportation fuels from oil shale and other unconventional fuel resources.

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