The bonds have a maturity date of 15 July 2041. However, the bonds may be called (repaid early) at the election of the issuer, on the first Reset Date of 15 July 2016 and then on any subsequent quarterly Interest Payment Date. The Issuer also has the right, in certain limited circumstances, to redeem the capital bonds prior to the first Reset Date.  

The interest rate for the initial period until the first Reset Date will be set at the higher of the Minimum Interest Rate and the sum of the 5 year Swap rate (as at the Rate Set Date on 23 May 2011) and the Margin. The Minimum Interest Rate and the Margin will be set following a book build process on 14 April 2011.

The Minimum Interest Rate will be no less than 8.50%p.a.

On each Reset Date the Interest Rate for the next five year period will be reset to the then five year Swap Rate plus the Step-Up Margin (being the initial Margin plus the Step-up Percentage of 0.25%p.a.)

Interest will be paid on a quarterly basis. Interest payments may be deferred in certain circumstances. Deferred interest is cumulative and accrues interest at the applicable Interest Rate.

Genesis Energy's Issuer Credit Rating is BBB+ (negative outlook) from Standard & Poor's ("S&P"). The Capital Bonds are expected to be assigned an Issue Credit Rating of BB-.

 

In addition, S&P has indicated it will assign a High Equity Content (100%) to the Capital Bonds until 15 July 2021.

In the event of a Change of Control, Genesis Energy will have the right to call the Capital Bonds. Investors will have the right to put the Capital Bonds if the Change of Control occurs and there is an associated downgrade in Genesis Energy's Issuer Rating to less than BBB+ within a specified period.