By Paul Deckelman
New York, May 2 - Additional terms surfaced in the market on Friday on Genel Energy plc's upsized $500 million issue of five-year senior notes, which priced on Thursday.
The issuer of record for the bond deal, which is unrated by any of the major agencies, is the company's General Energy Finance Ltd. subsidiary. Genel Energy plc and Genel Energy Holding Co. Ltd. are the guarantors of the issue, which ranks parri passu with the company's existing senior unsecured debt.
The notes priced at par to yield 7½%. They will mature on May 14, 2019.
The offering was increased from the originally announced $400 million in order to meet brisk investor demand, the company said.
The notes are non-callable for the first two years after issue, with first call on or after May 14, 2016 at 104.5. The call price declines after that on a yearly basis - to 103, then 101.5, and finally, to 100.75 on or after Nov. 14, 2018.
As previously reported, the deal, which was announced last Friday, came to market after an investor roadshow process. It is expected to settle on May 14, with the first coupon payable on Nov. 14.
The London-based oil and natural gas exploration and production company - which operates in the Middle East and Africa, claiming to be the largest independent oil producer in the Kurdistan Region of Iraq - plans to use the net proceeds of the offering toward a combination of field development costs as well as general corporate purposes and general working capital.
DNB Markets and Pareto Securities were joint lead managers and bookrunners for the offering.
| Issuer: | Genel Energy Finance Ltd., a subsidiary of Genel Energy plc
|
| Guarantors: | Genel Energy plc and Genel Energy Holding Co. Ltd.
|
| Amount: | $500 million, upsized from $400 million
|
| Securities: | Senior unsecured notes
|
| Maturity: | May 14, 2019
|
| Joint bookrunners: | DNB Markets, Pareto Securities
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Call protection: | Non-callable before May 14, 2016, then callable at 104.5, 103, 101.5 and finally at 101.75 on or after Nov. 14, 2018
|
| Trade date: | May 1
|
| Settlement date: | May 14
|
| Ratings: | Unrated
|
| Marketing: | Roadshow
|
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