View Full Version : Genesis capital bond issue

23-05-2017, 11:41 AM
Any opinions on this welcome; my eyes glaze over too fast on the details.
Terms Sheet linked here (http://www.craigsip.com/~/media/Files/Investment%20Banking/%20Genesis-Energy-Capital-Bonds-Terms%20Sheet)

23-05-2017, 01:37 PM
The Vector one was ever so slighly better (almost identical terms)
But at 5.7% its good enough for bond investors to be tempted I would suggest. We filled our book and sold the lot.
While it is long dated, it has a reset and resale facility provided by the Issuer every five years. And yet this allows them to consider 50% of the debt as equity. So its a win win in my view. Its pretty unlikely you will be forced to rollover in 5 years (but possible) The Issuer has to pay an extra margin on the whole bond if there are some not resold in five years so they are incentivised to place redemptions with new bond investors .
Vector bond was better though because the extra margin was a whole one percent whereas the Genesis extra margin is only 0.25%
Other than that and GNE paying quarterly interest the two bonds were the same.

23-05-2017, 01:40 PM
I heard its heavily oversubscribed?

23-05-2017, 02:02 PM
yes indeed McDongle

23-05-2017, 08:54 PM
I've been allocated 80% of what I applied for, so not too bad. Now waiting to see how much scaling there will be on Vector.

23-05-2017, 08:56 PM
Excellent; many thanks peat:t_up:

24-05-2017, 12:17 AM
Vector scaling was brutal.

02-06-2017, 06:22 PM
Luckily I got 100% of my application.
It was only 10K though..............
Of Vector

02-06-2017, 07:16 PM
i've just finished moving my allocation (for clarity, of Genesis)

25-06-2018, 08:02 PM
I am broadening my Horizon away from the current P2P major platform that's providing very few retail loans in the last few weeks.
Have applied for heaps of GNE050 Bonds coming up soon, hope my broker doesn't scale me back too much.
This will compliment my TD's; one advantage being, that they can be cashed in quickly. I am waiting for the property bubble to POP, then search for buying opportunities.

25-06-2018, 10:18 PM
Scaled back to a third of our Genesis app.